New York & Tri-State + Finance | February 5, 2019

Cuomo Cites SALT Elimination as State Tax Revenues Drop $2.3B

New York State saw personal income tax revenues decline by an estimated $2.3 billion year over year, according to Gov. Andrew Cuomo and State Controller Thomas DiNapoli. Cuomo put the blame squarely on the elimination of the State and Local Tax (SALT) deduction in the 2017 tax reform bill enacted by Congress.

“We are now seeing in the receipts the effect of SALT,” Cuomo said. “The receipts are down. They’re down in both the withholding component and in the estimated payments that we’re seeing coming in.”

He added, “SALT encourages high-income New Yorkers to move to other states… even if a small number of high-income taxpayers leave, it has a dramatic effect on this tax space.”

As a result, Cuomo said state spending on areas such as education, health and infrastructure would be impacted. “If you are losing tax revenue, it’s going to affect your budget overall,” he said.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).