It’s official. Governor Cuomo has released his proposed 2017 – 2018 Executive Budget. And yes, the extension of the “millionaire’s tax” through 2020, is front and center. The Division of the Budget press release in the “Highlights” section refers to it as “Extends tax rate on millionaires – 45,000 taxpayers impacted, 50% non-residents.” Should the term “non-residents” be replaced with “non-voters?”
The proposal also takes aim at continuing to limit the charitable contribution deduction for those with adjusted gross income (AGI) over $10 million. Charitable contributions for those with adjusted gross income over $1 million are limited to 50% of the federal deduction. Those with AGI over $10 million are presently limited to 25%. The 25% limit, set to expire at the end of 2017, would be permanently extended.
Some of the other highlights of the proposal include the following:
As of now, the proposed budget is just that; proposed. As usual, we will have to be patient to see what provisions make it through the legislative process. As the budget process moves forward, if you have questions, contact me at WBerkowitz@BerdonLLP.com or your Berdon advisor.
Wayne Berkowitz, a tax partner and head of the State and Local Tax Group at Berdon LLP, advises on the unique requirements of governments and municipalities across the nation.