A new federal tax bill was signed into law by President Donald Trump on December 22 that caps the allowable deduction of state and local taxes to $10,000 beginning in 2018. In response, New York Governor Andrew Cuomo signed an emergency executive order that allows taxpayers to make partial payments early so that property owners may claim the full deduction before the new tax bill takes effect.
While this executive order may allow property owners to pay some municipal taxes before the end of 2017, thereby claiming the full deduction before the tax bill goes into effect, it does not apply to school property taxes.
Most municipal taxes are calculated on a January 1 to December 31 calendar so they can be generated before the end of the year. However, East Greenbush Central School District’s fiscal year runs from July 1 to June 30 with its budget vote in May. Therefore, the school district is unable to have school tax bills available until late summer at its normal time.
According to The Council of School Superintendents, “the order did not suspend provisions of state property tax law governing the levy of school district property taxes and so there is no legal authorization for school districts to issue a tax warrant and corresponding tax bills for 2018-19 school taxes in advance of adopting a 2018-19 district budget. In other words, the order did not provide a way for taxpayers to be able to deduct prepaid 2018-19 school taxes.”
More information from The Council of School Superintendents.