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Executive Order Does Not Allow for Early Payment of 2018-2019 School District Taxes

December 27, 2017

On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, which included several revisions to the Internal Revenue Code.  The new law caps the allowable deduction for State and local income, sales and property taxes at $10,000.

In response, on that same day, Governor Andrew Cuomo signed an Executive Order to assist taxpayers seeking to pay property taxes prior to December 31 in order to deduct those payments on their 2017 federal income taxes.  The Order, and initial comments that the Governor made about it, have raised questions about whether or not school districts can accept early payments for taxes that will be levied during the 2018-2019  school year.

The Cobleskill-Richmondville Central School District has been advised that the Order “does not in any way provide authority for school districts to adopt estimated or partial tax warrants for the 2018-2019 school year or to issue tax bills corresponding to those warrants.”  Further, the Order “does not address the prepayment of school taxes and does not change the statutory process by which taxes are levied by schools.”

Municipalities cannot accept pre-payment of 2018-2019 school taxes on behalf of the Cobleskill-Richmondville Central School District for federal tax purposes at this time.  The district is required to  follow its standard budgeting and tax levying process and so will not adopt a budget and tax levy until the May school budget vote.

Category: Budget, News