Lowey Urges IRS to Allow Deduction of Prepaid Property Taxes During Facebook Live Event
VIDEO of the Facebook Live broadcast is available on Rep. Lowey’s Facebook Page
WHITE PLAINS, NY – Congresswoman Nita Lowey (D-NY17/Rockland-Westchester), Ranking Member on the House Appropriations Committee, today hosted a Facebook Live “teach in” to discuss the devastating impacts of the Republican tax bill and her latest efforts to protect New York taxpayers, including bipartisan legislation to restore the state and local tax (SALT) deduction. During the broadcast, Congresswoman Lowey announced a letter she sent this week urging the Internal Revenue Service (IRS) to allow taxpayers to fully deduct prepaid 2018 state and local property taxes on their 2017 returns.
“Today’s ‘teach in’ offered a fantastic opportunity to discuss the fundamental unfairness of the GOP tax bill to middle-class families, especially those in high-taxed states like New York,” said Congresswoman Lowey. “From effectively eliminating the state and local tax deduction to reducing the mortgage interest deduction, the bill unfairly burdens middle-class New York taxpayers, who already send more money to the federal government than New York gets back in federal investments. I will keep fighting to protect New York taxpayers and ensure they are not unfairly penalized.”
Congresswoman Lowey’s letter follows an IRS advisory issued in December 2017 that permits the deduction of prepaid state and local property taxes only in limited circumstances, the primary consideration being whether the real property taxes were “assessed” before 2018. At least 17,000 taxpayers in New York’s 17th Congressional district paid some portion of their 2018 local taxes in advance, seeking to secure full deduction in their 2017 taxes, because 2018 will be the first federal tax year SALT deductions are limited to only $10,000. For example, Clarkstown collected 2018 advance payments from an estimated 5,000 families and individuals out of 27,000 residential taxpayers, while North Castle assisted 1,000 residents, 25 percent of their total residential property owners, in paying taxes in advance. In the letter, the congresswoman urged Acting IRS Commissioner David Kautter to “prioritize assistance for taxpayers” and to “allow families to rightfully take this deduction in 2017 tax filings.”
Lowey was joined by Barry Kramer, President of the Hudson Gateway Association of REALTORS; White Plains Mayor Tom Roach; and North Castle Supervisor Mike Schiliro, who discussed the implications of the tax law on homeowners, property values, taxpayers who rushed to pay their 2018 local and state taxes before December 31st, and potential reductions in municipal services.
During the Facebook Live broadcast, Congresswoman Lowey also discussed bipartisan legislation she and Congressman Peter King (R-NY02/Nassau-Suffolk) introduced this week to fully reinstate the SALT deduction, which the federal tax overhaul signed into law last month limited to only $10,000 annually. This deduction was a major source of tax fairness for high-taxed states like New York, where 35 percent of taxpayers deduct an average of more than $22,000 every year. In Congresswoman Lowey’s district, the rate is even higher, with 45 percent of taxpayers taking an average state and local tax deduction of more than $26,000. The Lowey-King bill would provide tax relief for the millions of families who rely on the SALT deduction.
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