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The United States Supreme Court refused to hear an appeal filed by several states over a congressional cap on state and local tax deductions.
In 2017, Congress capped the SALT deductions at $10,000, angering residents and politicians in high tax states and leaving them with a higher tax bill.
New York filed a lawsuit over the cap along with New Jersey, Connecticut, and Maryland, arguing that it infringed on their ability to levy taxes on residents.
"The long history of federal income taxation demonstrates that Congress and the States equally understood that a deduction for all or nearly all state and local property and income taxes was constitutionally required to preserve state sovereign taxing authority," the states wrote in a court filing in March.
As a result of the High Court refusing to hear the appeal, the current cap will remain in effect until 2025. The House of Representatives passed a bill that would bump the cap to $80,000 until 2031, when it would be reduced back down to $10,000. The Senate has not yet taken any action on the bill. However, similar legislation has been proposed to set the SALT cap based on income.
The Supreme Court did not provide a reason as to why the Justices decided not to hear the appeal.