The Town of Hempstead wants the state to reimburse it for costs attributed to taxpayers scrambling to prepay local taxes.
Many residents are rushing to make payments ahead of the new federal tax law taking effect Jan. 1 that sets a $10,000 cap on deductions for state, local and property taxes.
Gov. Andrew Cuomo issued an emergency order that authorized localities to issue tax warrants that would allow property owners to pay some of their tax bill before the GOP tax overhaul takes effect.
Hempstead is one of the towns offering extended hours for people to make it in before the end of the year, but the receiver of taxes says overtime costs are growing.
“In order to accommodate the governor’s order, the overtime costs are starting to add up,” says Donald Clavin, Hempstead receiver of taxes. “And as a result of the governor’s order, we are going to ask the state to reimburse the Town of Hempstead and all localities across the state for those overtime costs.”
Clavin says the office has seen a 3,100% increase in tax collections compared to the same time last year.
Towns in Nassau have other fiscal concerns besides overtime. The towns have to give a 1 percent discount if residents prepay their taxes in full, and officials say this year they'll likely collect less penalty fees for those who file late. That could cost the towns money, although officials say it’s too early to tell how much.
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