It's your Money: Could your tax bill go up thousands of dollars next year?
Posted at: 04/17/2013 11:57 PM
By: Amanda CIavarri | WHEC.com
Is it possible that your tax bill could go up by thousands of dollars next year?
Governor Andrew Cuomo says New Yorkers will pay billions of dollars more in taxes, if a federal proposal goes through.
It calls for no longer allowing taxpayers to deduct state and local taxes from their federal return. That includes property taxes. The governor says he's calling on congress and the White House to reject it. He says adding that kind of tax burden on New Yorkers, would be devastating.
Mary Joyce D'Aurizio, Town of Irondequoit Supervisor, explains what it means for you.
“When you take on home ownership you take on the benefit of being able to deduct your mortgage interest and your real estate taxes. That benefit makes home ownership more appealing. The proposal is to eliminate your writing off as a deduction your property taxes.”
Governor Cuomo says the average taxpayer would see a 30-percent increase on their federal tax bill. Here that means, on average, your taxes would go up $2,800.
This is the break down by income:
For example, if you make less than $50,000 the average tax increase would be about $700. And if you make $200,000 to $300,000 the average increase would be $5,700.
“If homeowners are unable to deduct such things as your mortgage interest, your property taxes what is benefit of owning a home?,” said D'Aurizio.
She also says fewer people will be buying homes if this goes through, and fewer people will be adding on, or renovating their current homes, because the assessed value will be more.
“It is going to have a great impact on the housing market, carpenters, electricians, plumbers, other laborers, new home sales. It's just a lose lose cause it is going to hurt jobs, and we need jobs to sustain our economy,” said D'Aurizio.
The proposal also impacts interest rates for bonds needed for municipalities to run their operations... I'm told this means once again taxes would go up to off set the debt the municipalities would be in.
If you would like to voice your opinion on this, you can always call your federal lawmakers.