I OPPOSE Overriding the Tax Cap! We should not be adopting a
budget that is unfair to tax payers.
What is the Real Property Tax Cap?
With some exceptions, the State’s Property Tax Cap limits
the amount local governments and most school districts can increase the tax
levy (the total amount of property taxes billed) to the lower of two percent or
the rate of inflation. (Individual property tax bills are based on various
factors, and they may increase more than two percent.)
Local governments, citizens and the Office of the New York
State Comptroller (OSC) play important roles in the process.
Local governments, libraries, schools (except New York City)
and fire districts must report to OSC: the information necessary to calculate
their tax levy limit; and, whether they plan to stay within the Tax Cap.
Local government boards must pass a local law or resolution
by at least a 60 percent vote to override the Tax Cap.
Counties, cities and villages are already subject to a
constitutional tax limit under article VIII of the State Constitution. How does
this limitation differ from the tax levy limit?
The tax cap is a restriction on the year-to-year increase in
the tax levy, while the constitutional tax limit is a restriction on the total
amount of the levy in any single year. Therefore, the tax levy limit is a
separate restriction imposed upon counties, cities and villages that is in
addition to the threshold constraint of the constitutional tax limit. Counties,
cities and villages must meet both requirements.