Suffolk County To Study Federal Tax 'Workaround'
A Suffolk County task force will explore whether residents would benefit from a state proposal to pay into a charitable gift fund in lieu of paying property and school taxes.
Congress capped state and local property tax deductions at $10,000 last year. But New York State, which has some of the highest property taxes in the country, might have found a workaround. School districts and local municipalities would set up charitable gift funds. Contributions to those funds, instead of local tax payments, could then offset the new federal tax burden.
Suffolk County Legislature Presiding Officer DuWayne Gregory wants to know how the plan would affect Suffolk County.
“We need to study potential costs and benefits associated with school districts and local governments participating in these options and whether they can be successfully implemented. As Long Islanders, who pay some of the highest property taxes in the country, we will be the ones suffering the worst consequences as a result of this arbitrary law that caps deduction for state and local taxes at $10,000.”
The task force has 90 days to complete its report. There will be at least one public hearing before then.