Turn To Tara: HV lawmakers taking on IRS over tax cap
Local politicians are joining in a fight to ward off a proposed IRS regulation that could send property taxes skyrocketing next year in the Hudson Valley.
Assembly members Amy Paulin, of Scarsdale, and David Buchwald, of White Plains, created a rapidly growing bipartisan coalition of municipalities and school leaders across the tri-state area. The group aims to crush a proposed IRS regulation that would stop homeowners from paying their local taxes through charitable donations.
It was a move many residents opted to take in an effort to offset the new federal $10,000 cap on state and local tax deductions.
The coalition will be submitting its arguments to the IRS this week ahead of a Nov. 5 public hearing in Washington, D.C.
If the IRS doesn’t change its mind, the plan is to forge forward with a lawsuit because both officials say that the stakes couldn't be any higher for the Hudson Valley.
Buchwald, a former tax attorney, estimates that the average homeowner would see an increase in their property taxes of 25 to 37 percent next year alone.