Many LI Villages are Trying to Prevent Property Owners From Prepaying Taxes to Avoid GOP Tax Hike
As if there isn’t enough insult to injury in the GOP tax reform scam-it’s the worst bill since the Poor Laws.
“In Hempstead, a Long Island town where the typical property tax bill tops $10,000, residents have lined up all week to prepay those taxes for next year. They have been trying to save thousands of dollars before the new federal tax bill, which goes into effect on New Year’s Day, sharply limits deductions for state and local taxes.”
“But late on Wednesday, the Internal Revenue Service issued new guidancethat those people may not be able to save the money after all, because a loophole that they were hoping to exploit might be narrower than thought. So when Donald X. Clavin Jr., Hempstead’s receiver of taxes, showed up to work Thursday morning, the lines were still there — but residents had fresh questions. Mr. Clavin had few answers.”
“Everybody on line, they’re going, ‘Don, are we going to be able to do this?’ ” Mr. Clavin said. “And I can’t give them a yes or a no.”
“The new tax bill, and its $10,000 cap on all local and state tax deductions, has generated a variety of strong emotions — including anxiety and frustration — in places like Hempstead.”
“By Thursday, however, that stew of emotions had been replaced by utter confusion, as well as rage, including among people who had shelled out money only to discover that they might not get any benefit.”
Oops! All of this rush for nothing. The GOP bill deliberately prevents people from prepaying taxes.
“The new cap does not take effect until January, however. The tax bill explicitly prevented people from prepaying state income taxes, but it did not address prepayment of property taxes. That gave homeowners a brief window to pay their 2018 property taxes in 2017, and to take the full deduction when they file their federal returns this spring.”
“Officials in Chicago, Washington, Fairfax, Va., and other communities reported huge surges of residents prepaying taxes, often showing up in person, checks in hand. Democratic politicians, who have opposed the bill, egged them on, arguing that the bill targeted states that tend to vote for Democrats.”
Give Andrew Cuomo some kudos though as he is making sure taxpayers CAN prepay at least SOME of their state taxes.
“Village officials on Long Island said they have been swamped this week with phone calls from residents asking if they can prepay their 2018-2019 village taxes.”
“The answer is no.”
“Residents can prepay their 2018 second-half school and general taxes to towns by the end of the year — even in Nassau County, where it was previously prohibited — after an executive order signed by Gov. Andrew M. Cuomo last week.”
“Many villages have not yet prepared their 2018-2019 annual budgets because most operate on a fiscal year that ends May 31. They have not determined a tax levy or held the required public hearings and would not be able to do so before Sunday, the last day of 2017, officials said.”
“How can you pay a tax if you don’t know what it is?” said Teresa Emmel, the clerk-treasurer in Malverne, where the average property owner pays a village tax of about $4,300. “I feel for people, there’s too many unknowns right now.”
How do you do it? If there’s a will there’s a way. How about you let them do it based on current knowledge and then you make whatever revisals are necessary next year? That’s if they really felt for the people-rather than they just wanted to maximize revenue.
P.S. Hope you have a great New Year. Tomorrow is, of course, New Year’s Eve. And New Year’s Eve is also the filing deadline for campaign donations for this year.
So if you want to donate to us, now is the time to do it.
The consultants have cleaned me up now-and only let me wear suits. I can’t wear my impeachment train t-shirt-as great an idea as it was-in all due modesty!
So I have to live vicariously through you.