Gillibrand Votes for Property Tax Deduction
Press Release
Gillibrand Votes for Property Tax Deduction
Yesterday, local Congresswoman Kirsten Gillibrand voted for the American Housing Rescue & Foreclosure Prevention Act [H.R. 3221], bipartisan legislation that will responsibly soothe turmoil in the housing market and the larger economy. Contained in the bill is a provision that Gillibrand has been a strong advocate for: providing an additional tax deduction for property taxes. The bill would allow families to take an additional deduction of up to $1,000 on their federal taxes.
"This property tax deduction will bring real relief to working families and seniors, and I am thankful that it was included in legislation that is expected to be signed into law. Homeowners in Upstate New York face some of the highest property taxes in the county, and this bill will put some extra money into the pockets of hardworking homeowners at a time of increased food, fuel and energy costs," said Congresswoman Gillibrand.
Currently, if a homeowner itemizes their taxes, then they can deduct their state, local and property taxes; however, approximately 40% of homeowners do not itemize their taxes. In 2005, roughly 1.4 million New York tax filers who paid property taxes did not itemize their deductions to account for property taxes.
The American Housing Rescue & Foreclosure Prevention Act also contained a first-time homebuyer tax credit to assist families make a down payment on a home. The provision would provide individuals and families with a refundable credit (equivalent to an interest-free loan) of up to $7,500.
Over the past year, Gillibrand has held numerous property tax town hall forums throughout her district in order to hear from constituents about their property and school tax burdens. In Congress, Gillibrand has strongly opposed unfunded mandates, such as No Child Left Behind, which place an unfair burden on school and local government budgets and results in higher property taxes. Finally, her office has assisted towns and counties with federal grant applications, and since January of 2007, her office has helped secure over $20 million in grants and earmarks for this region's funding priorities, which can often defray infrastructure costs and allow for a reduction in local taxes.
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