Governor Authorizes Allowing Early, Partial 2018 Tax Payments

Gov. Andrew M. Cuomo signed an emergency executive order Friday that will help protect property owners in New York from the impact of the recently enacted tax reform bill. The order authorized local governments to immediately issue tax warrants for the collection of 2018 property tax payments. It also allows property owners to pay at least a portion of their bill before the end of the year and under the current tax construct.

Cuomo directed the state Department of Taxation and Finance to work with local governments to facilitate early tax collection.

The federal tax plan, which President Donald Trump signed into law Friday, caps the deductibility of state and local taxes at $10,000, which has the effect of raising property taxes and reducing home values in New York and in state across the country, Cuomo said.

“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. “New York has made unprecedented progress reducing the burden of taxes on our middle-class families, and we will not allow this attack to roll back all that we have achieved. 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.”

From the press release:

Governor Cuomo signed Executive Order #172 today, which includes two actions:

Authorizes Local Officials to Immediately Levy Taxes

The Governor authorized 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, December 28, 2017.

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.

Allows Taxpayers to Make Partial Payments Early

The EO 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.

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, December 29, 2017. Online payments can be made until 11:59 p.m. on Sunday, December 31, 2017, and payments made by mail that are postmarked on or before December 31, 2017 are authorized.

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