Lawmaker proposes new tax law to help with deduction capPosted: Updated:
A state lawmaker from Scarsdale plans to bring a new tax bill to Albany this week to help offset the pain of the state and local tax deduction cap under the new federal tax law.
Rep. Amy Paulin is bringing new legislation to Albany that would change state law to allow New Yorkers the ability to itemize deductions on their state taxes, even if they can't on their federal tax bill.
The Scarsdale Democrat is also proposing a bill that would allow school districts, towns and counties the ability to create special funds that residents could donate to, and then get a tax credit they could apply against their property tax bill.
Paulin says the tax bills are absolutely crucial to keeping people in Westchester, which boasts some of the highest property taxes nationwide.
"People have invested in their homes. I know we have. And it's a large part of our assets. And it's going to be worth less because our taxes are high and we can't use the itemizations off our bills. People are going to flee," she says.
Homeowners in Scardale pay some of the highest property taxes in the county. When News 12 asked residents what they thought of Paulin's tax bill, they were optimistic about the idea.
Paulin says she will file the bills in Albany at the beginning of the week.
The bills would then have to be passed by the state legislature and signed off by Gov. Andrew Cuomo before they could go into effect.