Court strikes down SALT deduction lawsuit

Posted: Updated:

A judge handed down a major blow to Hudson Valley homeowners hoping the courts would overturn the federal cap on the SALT deduction.

Monday, a federal judge tossed a lawsuit filed by New York, New Jersey, Connecticut and Maryland.

The states sought to block the cap on state and local tax deductions included in the GOP-led 2017 tax overhaul.

Officials in the mid-Atlantic argued the SALT cap was designed to punish blue states.

New York State Attorney General Letitia James issued a statement that reads, in part, "We filed this lawsuit to protect our residents from the cap on the state and local tax deduction, an invasive and unprecedented attempt by the federal government to curtail our states' constitutional rights...We will continue to review the decision as we consider all of our options."

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