SCHOOL DISTRICTS WERE INVITED TO ATTEND SINCE THEY ALSO HAVE TO APPROVE SIMILAR RESOLUTIONS

NYS APPROVED LAW AUTHORIZING DEDUCTION BUT IRS HAS NOT YET ADVISED IF THIS CAN BE DONE…

Last year the United States Congress and President Trump approved legislation with a new $10,000 cap on itemized deductions for state and local taxes. New York State is fighting back and enacted legislation authorizing local governments and school districts to create a public fund to which taxpayers could contribute and claim a tax charitable donation. A link to the guidelines from NYS is below. Another link from the lohud.com news story (Governor's signing of the legislation). A third link: counsel to some school districts expressing caution--highlighting fact that the IRS may not allow the deductions.

The Greenburgh Town Board and all local school districts within Greenburgh have the ability to  approve resolutions creating the charitable accounts. I have asked the Town Board to discuss this matter at Tuesday morning’s work session.

I have invited the school districts to join us at the work session beginning at 10 AM. Since the school portion of your total tax bill represents the majority of your tax bill – for this legislation to have any real impact the school districts will have to be on board.  The law does not apply to fire district taxes.

Your thoughts are welcome. My personal thought: I think the town should offer the option but highlight to residents that the IRS may not OK the deduction. If residents choose to take advantage of the program it’s at their risk.  The downside: there will be costs associated with implementing this option.  The Receiver of Taxes may have to add staff and purchase new software. The downside to not taking action: If the IRS Oks the charitable deduction and we don’t offer residents this option, residents won’t be able to save thousands of dollars.  I think that we should do everything we can to help people get the maximum tax reductions legally  possible. The problem: NYS thinks this new legislation will enable residents to save significant dollars. But, we haven’t heard from the IRS.

PAUL FEINER

https://www.tax.ny.gov/pdf/ORPTS/charitable-contributions-guidance.pdf

https://www.lohud.com/story/news/politics/2018/04/17/cuomo-tax-law-signing-westchester/523715002/

concerns highlighted by counsel to some school districts

https://www.bsk.com/news-insights/title--nbsp