ALBANY – Albany is trying to rally state and local elected officials to voice opposition to a federal proposal on the table that would essentially result in the ‘double taxation’ of property owners statewide and result in higher taxation for all taxpayers, even without change in the state and federal tax rate.
According to a press release from New York Governor Andrew Cuomo’s office, the federal proposal would end a long-standing †policy that allows taxpayers to deduct their state and local tax liability, including property taxes, from their federal taxes. This means taxpayers - no exemptions made for income group or region of the state - would pay property taxes at both the local and federal levels.
Approximately 3.3 million taxpayers in New York itemized deductions on their federal return in 2010 and nearly all - 99.6 percent - claimed a deduction for state and local taxes paid. If the current proposal is enacted as part of the federal budget and these deductions for state and local tax are eliminated, it would result in a nearly $15 billion tax increase for New York State without any change in the tax rates.