The supreme court has rejected an appeal by NY and three other states to challenge the cap on SALT taxes. For now, Long Islanders will have to find other ways to minimize their annual tax bills.
The SALT tax cap means that Long Islanders are limited to a combined deduction of $10,000 on the state income taxes, and local property taxes.
That obviously doesn’t go far for most.
NY state has been trying to appeal the cap in order to allow it to maintain among the highest tax rates in the nation, and to keep on raising them.
It appears that the supreme court may be trying to press states with high property taxes and their own income taxes, on top of federal income taxes to provide more relief to their residents and property owners.
Property Taxes Keep On Going Up
If NY actually cared about lower taxes, and more tax deductions, they could simply lower tax rates, or even do away with state income taxes and annual property taxes. Like many other successful destinations.
Instead taxes just seem to keep on going up. Not only income taxes, but property tax rates and tax assessments.
Just look at New Hyde Park, which is increasing their spending by 15.66% for the 2022 to 2023 tax year.
Breaks that are given, continue to go to the wealthiest, who have the most extra money to splurge on building new properties. As well as multi-billion dollar businesses. That shortfall is then passed on to everyone else to pay. Not to mention installing new real estate related taxes.
The Rising Cost Of Living On Long Island
These tax increases come at a time when the state is already grappling with extreme inflation. Aside from the cost of gas, groceries, and insurance, those who now fall late on their annual property taxes can pay as much as 18% interest in penalties. If they can’t catch up, they can lose their homes.
On top of this, the Fed seems to be planning some serious interest rate hikes. That will make everything even more expensive.
How To Save On Your Taxes
You still have the right and ability to get help from Property Tax Adjusters, Ltd. to challenge and reduce your annual property tax bill.
Then get a better CPA or tax preparer to help reduce your state income taxes. Together this can help optimize this SALT deduction.
Of course, it is also up to each of us to get involved in the process and voice our opinions about taxes.