ALBANY—The states of New York, New Jersey and Connecticut have formed a coalition that intends to file suit against the federal government over the recently enacted federal tax reform law.

The suit, which has yet to be filed, specifically targets changes made to state and local tax deductibility. The Tax Cuts and Jobs Act caps state and local tax (SALT) and property tax deductions at $10,000. The provision is expected to hurt high-tax states, such as New York, New Jersey and Connecticut.

In the coalition's announcement, it states that the provision “effectively preempts the states' ability to govern by reducing the ability to provide for their own citizens and unfairly targets New York and similarly situated states in violation of the Constitution.” The coalition believes that tenets of the federal tax reform law constitute double taxation.