Town of Guilderland Will Continue to Accept Early Payment of 2018 Property Taxes in 2017 Per the 12/26/17 Press Release.
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which included several revisions to the Internal Revenue Code. The new law caps the allowable deduction for State and local income, sales and property taxes at $10,000. The loss of this deduction is thought to be disproportionately harmful to New Yorkers, among others.
In response, on that same day, Governor Andrew Cuomo signed an Executive Order to assist taxpayers seeking to pay property taxes prior to December 31 in order to deduct those payments on their 2017 federal income taxes. The Order, and initial comments that the Governor made about it, have raised questions about whether or not school districts can accept early payments for taxes that will be levied during the 2018-2019 school year.
Following a close review of the Order, counsel for the Guilderland Central School District has advised that the Order “does not in any way provide authority for school districts to adopt estimated or partial tax warrants for the 2018-2019 school year or to issue tax bills corresponding to those warrants.” Further, the Order “does not address the prepayment of school taxes and does not change the statutory process by which taxes are levied by schools.”
Therefore, the Town of Guilderland cannot accept pre-payment of 2018-2019 school taxes on behalf of the Guilderland Central School District for federal tax purposes at this time. The district is required to follow its standard budgeting and tax levying process and so will not adopt a budget and tax levy until the May school budget vote.