DO YOU HAVE FAMILY OR FRIENDS WHO LIVE IN A RED STATE REPRESENTED BY A SENATOR OR CONGRESSMAN WHO INITIALLY VOTED TO REPEAL REAL ESTATE PROPERTY TAX DEDUCTIONS AND DEDUCTIONS OF LOCAL AND STATE INCOME TAXES?
CALL YOUR FRIEND AND FAMILY MEMBER AND ASK THEM TO CONTACT THEIR REPRESENTATIVES
The most recent action by the US Congress, regarding changes in the tax code will have a major impact on our community and could threaten the ability of many of our residents to remain as homeowners while diminishing the value of our housing stock. The town and all local government entities must be prudent and cautious regarding spending and must avoid unnecessary risks.
The new code, if approved by the US Senate and House of Representatives, will remove the current ability to deduct Local and State Income taxes on Federal tax returns. This change will adversely affect those in states like New York. For Greenburgh, the increase in Income Tax paid will decrease the amount residents will have available to pay for housing and other living expenses.
Depending on the outcome of the negotiations between the US Senate and House of Representatives, mortgage interest on loans in excess of $500,000 may no longer be deductible. In the majority of the town of Greenburgh this provision will affect only a small number of residents. However, in communities with the most expensive homes that are valued in excess of $1,000,000, the majority of constituents could have debt in excess of the $500,000 potential cap and will lose the deductibility portion of their loan. They, too, will have increased home carrying costs.
Both the Senate and House plan to cap the deduction of property taxes at $10,000 each year. The majority of homes in our town and other other counties in southern NYS have property taxes in excess of $10,000 (school, town, village, county, fire district) and many homes assessed at over a million dollars have taxes that are two, three or four times that amount. The change in this section of the tax code will affect very homeowner and will be devastating to many.
Overall, these changes affect all of New York State homeownership, but cut especially deeply in Greenburgh. The above actions will increase the cost of operating our homes and could decrease the value of all of our housing stock. In addition, the actions contemplated by Washington will decrease the monthly budget amount that prospective buyers will have for purchases. The inevitable result: fewer buyers and decreased home values.
It's not over. The Senate and House of Representatives have to approve the same bill and will have to take another vote--sometime later this month. YOU CAN HELP by contacting family and friends in states with Republican Senators and Representatives. Ask your friend or family member to call their representatives in Washington and vote no on the above provisions.
The town of Greenburgh, in anticipation of the possible tax plans, will seek ways to ensure the most efficient and effective approach to the provision of high quality services to our constituency. We will try to avoid taking risks that could negatively impact our residents and wll work together to ensure that our neighbor's can remain in their homes and flourish.
Greenburgh Town Supervisor