On Friday, December 22, 2017, Governor Cuomo issued Executive Order No. 172-2017, which suspends the application of provisions contained in the New York Real Property Tax Law and the Westchester County Tax Law governing the levy and collection of real property taxes.
The Executive Order was issued in response to federal tax law changes that will limit the amount of state and local tax deductions in 2018. As made clear in its preamble, the intent of the Executive Order is to facilitate the payment of real property taxes – including those that would ordinarily be levied, billed and collected in 2018 – before the end of this year.
The Town of New Castle intends to take steps permitted under existing law and the Executive Order to allow its property owners to make real property tax payments that would ordinarily be billed in 2018.
Please note that these payments are limited to Town and Town special district taxes only. County taxes may also be included depending upon whether a County tax warrant is issued or further clarification concerning the Executive Order is received. The Town will monitor this situation and issue additional guidance as soon as it can.
Please note that payment of school taxes to be levied in September 2018 will not be accepted before the end of this year. These taxes relate to a future fiscal year that runs from July 1, 2018 to June 30, 2019 and for which a budget has not been adopted.
The Tax Receiver will accept the second half of currently levied 2017-18 school taxes before December 31, 2017, in accordance with standing practice and procedure.
Due to the timing of the Executive Order, the Town will not be able to issue tax bills. In order to take advantage of the Executive Order, property owners may tender the amount of Town and Town special district taxes that were paid in April 2017. These will be credited against taxes ordinarily due on April 30, 2018. If County taxes can be included, they may be tendered in the 2017 amount as well. However, as mentioned, the ability to pay County taxes in this manner is still unresolved.
Under the Executive Order, these taxes may be paid and accepted in person at Town Hall until the close of business (5:00 p.m.) on Friday, December 29, 2017 or by mail (payments to be sent to the Tax Receiver) provided they are postmarked as of December 31, 2017.
If you escrow taxes through a financial institution or mortgage servicer, you are encouraged to contact your lender to make arrangements relative to payment of these taxes as provided in the Executive Order.
Although the Town of New Castle is proceeding with tax collection as permitted in the Executive Order, it offers no opinion concerning the ultimate deductibility of any taxes paid for federal tax purposes. Property owners should consult with their own tax professionals for guidance with regard to the federal tax implications associated with these payments.
This is a rapidly evolving situation, and the Town will provide updates as warranted. Town Hall offices, including the tax office are closed Monday, December 25 and Tuesday, December 26 for the Christmas holiday. Town Hall offices will re-open on Wednesday, December 27 at 8:45 am.
The full text of the Governor’s Executive Order can be found here.
Rob Greenstein, Town Supervisor