Important Information Regarding Early Tax Payments for 2018
Dear Residents and Neighbors:
The recently enacted Federal tax bill that was just signed amends provisions of the tax code that have been in place for many years, with major effects on New York State. As many of you know, probably the most significant negative change for Tarrytown residents is that, beginning with the 2018 tax year, there will be a $10,000 limitation on Federal income tax deductions for State and Local Taxes (SALT).
There have been many discussions and reports on whether local property taxes due in 2018 could be prepaid in 2017, but such prepayment in New York State was not allowed. However, on Friday, December 22, 2017, Governor Andrew Cuomo issued an Executive Order allowing for the prepayment of local taxes in certain circumstances.
Many residents of Tarrytown have asked – does the Governor’s Executive Order apply to Tarrytown, and can the Village accept pre-payment of taxes for Village tax bills that are normally issued at the end of May each year?
Unfortunately, based on a careful examination of the issue by Treasurer Jim Hart, Administrator Rich Slingerland and Village Attorney Steve Silverberg, we have concluded that the order does not apply to villages and, therefore, we are unable to accept pre-payments. The following are the two primary reasons why this is so:
- Since the Governor's executive order applies explicitly only to counties and towns, and not to villages, the current State law prohibiting Villages from accepting prepayment remains in force.
- Even if the executive order had included villages in a prepayment scenario, it still requires that municipalities have an approved budget in place for the upcoming fiscal year in order to collect the taxes related to it. As with most villages our next budget year doesn’t begin until June 1, 2018 (with approval normally taking place in late April), and it is therefore impossible for the Village Board to approve that budget by the end of this week.
Despite this, the Governor's executive order may be helpful for taxpayers making payments to counties and towns that have fiscal years beginning January 1 (including Greenburgh and Westchester). Since Greenburgh is Tarrytown’s relevant taxing entity for these taxes, we would advise that interested residents regularly check the Greenburgh website (http://www.greenburghny.com) over the next few days to determine what actions are suggested. As of this writing, the Town hasn’t yet posted instructions, but it is expected to do so shortly. In addition, we will continue to post any updates on the Tarrytown website if and when they become available.
Governor Cuomo and most members of the New York State Congressional delegation understand the hurt that this Federal tax bill will cause to the residents of New York. While the Governor’s Executive Order did not include villages, it may help alleviate some of the pain experienced by Tarrytown taxpayers.
Sincerely,
Drew Fixell
Mayor