Tax Relief

SALT Deduction

Current Status (after One Big Beautiful Bill Act, July 2025)

• Cap raised from $10,000 to $40,000 for households under $500,000 AGI
• Phases out for income above $500,000
• Reverts to $10,000 in 2030
• 1% annual inflation adjustment through 2029

Impact for NY-01

• Family earning $250,000 with $18,000 property taxes gains ~$5,000
• Primarily benefits upper-middle-income households
• Does not help renters or those not itemizing
• Temporary nature creates uncertainty

Permanent Solution Strategy

• Continue advocacy for full repeal or permanent higher cap
• Build bipartisan coalition (affects red states too—Texas, Florida have high property taxes)
• Tie to broader tax reform discussions
• Address 2030 cliff before it arrives

Property Tax Reform

Assessment Equity

• Regular revaluations to ensure assessment accuracy
• Limits on assessment increases (homestead exemptions)
• Appeals process reform for faster resolution
• Commercial/residential assessment ratio review

Circuit Breaker Programs

• Property tax relief for seniors on fixed income
• Income-based property tax caps (property tax cannot exceed X% of income)
• Automatic enrollment for eligible households
• State funding to hold localities harmless

School Funding Reform

• Reduce reliance on property taxes for education
• Updated funding formula using current (not 2000 Census) data
• State aid equalization across districts
• Regional resource sharing for specialized services

The Bigger Picture

Property taxes in New York are among the highest in the nation. While the SALT deduction provides some relief, fundamental reform is needed:

• Shift education funding from property taxes to broader-based taxes
• Protect seniors and fixed-income households from being priced out
• Ensure assessments are fair and up-to-date
• Create predictability for homeowners through caps and limits