Well, it happened. Back in January, New York’s Governor Andrew Cuomo announced that the State was considering, among other things, a lawsuit against the federal government for taking away the SALT deduction as part of the 2017 tax overhaul. We talked about that issue here, and I've also talked more generally about the pain and suffering (and residency changes) caused by the loss of the SALT deduction. But yesterday, New York followed through in court, and it had some helpers.
Yesterday we put out an "Alert" the Governor’s final 2019 budget bill. It contains everything you need to know about what tax provisions passed in the budget (and what did not pass).
Here at the Noonan’s Notes Blog, we’ve been following the process closely (see my prior report on the proposed budget here). Here’s my take on how everything shook out:
It’s “budget season!” On January 16th, Governor Cuomo released the FY 2019 Executive Budget, which is available here, and one day later the Department of Taxation and Finance issued a preliminary report on consequences of the Federal Tax reform and possible legislative responses, which can be found here. We blogged about some of this last month. Then, just last week, in his “30-day amendments” to the FY 2019 Executive Budget, we got to see more of the Governor’s proposals take shape. Now the dust has somewhat settled on all these proposals, so let’s take a look. The highlights of the proposed amendments, which include a new optional Employer Compensation Expense Tax system, increasing the options for charitable deductions, and provisions designed to decouple the state tax code from the federal tax code, are summarized below.
We are just a couple days into 2018, and the fallout from the recently passed federal tax reform has already begun.
Here's what you need to know about the likelihood of a disappearing SALT deduction.