NYSAR Releases Fact Sheet Outlining Potential Risks for New York Homeowners
Celebrates Over 8,000 Calls, Letters & Signatures to Urge Support for NY First Home
ALBANY, NY –- (RealEstateRama) — The New York State Association of REALTORS (NYSAR) today gathered in Albany for its annual Lobby Day to raise awareness about dangerous proposals included in President Donald Trump’s federal tax plan and meet with legislative leaders to promote the NY First Home, a proposal that would allow individuals to deposit up to $5,000 a year ($10,000 a year for couples) into a first home savings account, which would be tax deductible for state income tax purposes.
NYSAR outlined specific concerns about President Trump’s tax reform proposals that would eliminate the deduction of state and local taxes, including property taxes, and diminish the value of the Mortgage Interest Deduction.
“We support efforts to reform the federal tax code to create a more simplified and fair system, but eliminating the deduction of state and local taxes, including property taxes, will only serve to hurt New Yorkers disproportionately compared to other states,” said Dawn Carpenter, president of NYSAR.
According to the National Association of REALTORS American Community Survey and Research Division, New York taxpayers would experience a significant loss in savings if federal tax reform eliminated state and local tax deductions, and many homeowners would lose equity in their homes, a fundamental source of family wealth.
In 2013, New York State taxpayers saved an average of $2,050 on their income taxes due to real estate tax deductions. Approximately 2.4 million New York taxpayers claimed a deduction for real estate taxes totaling more than $19.7 billion in deductions.
“The White House proposal would end the tax benefit of owning a home for 95 percent of American families and increase taxes for millions of New Yorkers. We urge members of our Congressional delegation to reject proposals that threaten New York’s economy and hurt working families,” added Carpenter.
During its lobby day, NYSAR also urged lawmakers to support the NY First Home proposal, S.4058-Little/A.5616-Ramos. NY First Home is modeled after New York’s 529 College Savings Program and would allow New Yorkers to deposit up to $5,000 a year ($10,000 a year for couples) into a first home savings account, which would be tax deductible for state income tax purposes.
If passed, New Yorkers would be able to apply the savings and any interest earned towards the purchase of a first home in New York State.
“It isn’t the monthly mortgage payment that is preventing New Yorkers from achieving the American Dream of homeownership, it is the ability to save for the down payment and our closing costs, which are perennially among the highest in the nation,” said Duncan R. MacKenzie, NYSAR CEO. “This is leading to an exodus from our state as our young families and individuals leave to buy homes in more affordable locations,” he said, adding that recent studies have shown that New York is facing a population loss and is ranked as the third worst state for first-time homebuyers.
“It’s important that New York take action to reverse these trends. NY First Home is a responsible and much-needed initiative that can encourage thousands of New Yorkers to remain in New York and help those who are struggling to save for a first home. It’s why the proposal continues to receive strong support from New Yorkers and their state representatives,” added MacKenzie.
The proposal, which passed the New York State Senate unanimously in 2016, was included among this year’s budget priorities as stated by the Senate majority conference and the Independent Democratic Conference or IDC.
The NY First Home proposal is also supported by more than half of the Assembly Majority conference with 57 members signing on as co-sponsors of the bill.
Results from a Homeownership Poll conducted by the Siena Research Institute (SRI) show that 84 percent of New York voters support the NY First Home proposal. Support for the program was bi-partisan and spread across the entire state.
MacKenzie stated, “It’s clear that New Yorkers want to see NY First Home become a reality, and I join them in asking the governor and legislature to make this proposal a priority.”
Since the launch of the NY First Home campaign, New Yorkers have shown their support for the proposal by submitting more than 8,000 calls, letters and signatures to state representatives. Public support for the measure has generated strong bi-partisan backing for the legislation in the New York State Legislature and has been identified as a budget priority. This year’s progress follows the unanimous support the legislation found in the New York Senate in 2016.
Salvatore I. Prividera Jr.
Director of Communications
518-463-0300 x208 office
sprividera (at) nysar (dot) com
The New York State Association of REALTORS® is a not-for-profit trade organization representing more than 53,000 of New York State’s real estate professionals. The term REALTOR® is a registered trademark, which identifies real estate professionals who subscribe to a strict code of ethics as members of the National Association of REALTORS®. These REALTORS® are also members of the New York State Association of REALTORS® as well as their local board or association of REALTORS®. To learn more visit, nyfirsthome.com and nysar.com.