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Governor issues order allowing some 2018 property taxes to be deducted on 2017 claims

Posted 12/26/17

Gov. Andrew Cuomo today issued an emergency executive order to allow property owners in St. Lawrence County and around the state to deduct at least some of their 2018 property tax payments from 2017 …

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Governor issues order allowing some 2018 property taxes to be deducted on 2017 claims

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Gov. Andrew Cuomo today issued an emergency executive order to allow property owners in St. Lawrence County and around the state to deduct at least some of their 2018 property tax payments from 2017 federal income taxes.

The order will help New York property owners to avoid the “devastating impact” of the $10,000 cap on state and local tax deductions from federal income tax in the new GOP tax bill just signed into law, the governor said.

The order directs the state Department of Taxation and Finance to work with local governments to facilitate early tax collection.

It authorizes local governments to immediately issue tax warrants for the collection of 2018 property tax payments and allows property owners to pay at least a portion of the bill before the end of the year and under the current tax construct.

The federal tax plan caps the deductibility of state and local taxes at $10,000, effectively raising property taxes and reducing home values in New York and in states across the country, according to a press statement from the governor’s office.

"As Washington wages an all-out assault on this state and this nation, I have authorized local governments to allow property owners to pay part or all of their taxes early," Cuomo said. "This Executive Order will allow property owners to deduct either part or the full amount of their payment from their federal taxes before the GOP tax bill goes into effect."

The order signed today includes two actions:

It authorizes local governments to immediately issue warrants to levy property taxes by the end of the year. Officials should issue warrants for the collection of taxes and deliver them to the local tax collector immediately, and no later than 11:59 p.m. on Thursday, Dec. 28.

This will allow New Yorkers to pay their property taxes for 2018 in the 2017 calendar year and allow localities to accept advance payment so that property owners can deduct the full amount of their payment at the federal level.

It will also suspend local laws limiting the ability of taxpayers to make partial payment of property taxes until the end of the year. Since many taxpayers do not yet know the exact amount of their bill, this will allow for a portion of taxes to be paid early and under the current federal tax law before the new federal law goes into effect.

Each local tax collector is now authorized and directed to accept partial payments of warranted taxes from property owners until the close of business on Friday, Dec. 29. Online payments can be made until 11:59 p.m. on Sunday, Dec. 31, and payments made by mail that are postmarked on or before Dec. 31 are authorized.