NY1: For the fifth year in a row, New York’s cap on property tax levy increases will remain capped at 2% for local governments that operate on a calendar-based fiscal year, state Comptroller Tom DiNapoli announced Tuesday.
The announcement affects local governments — counties, towns, fire districts, 44 cities and 13 villages — that have their fiscal year end Dec. 31.
New York’s property tax cap limits levy growth at either 2% or the rate of inflation, whichever is lower.
The tax cap has been in effect since 2012. In the early years of the tax cap, allowable property tax growth was under 2% given the relatively flat rate of inflation. But the last several years has seen a steady increase in inflation, giving more leeway to local governments in the amount of money they can raise in taxes. Federal officials reported Tuesday that inflation rose last month to its highest level since February.
“Allowable tax levy growth will be limited to 2% for a fifth consecutive year,” DiNapoli said in a statement. “The challenge for local governments will be maintaining essential local services within this cap, while still dealing with higher prices for commodities and services and the potential impact of policy choices at the federal level.”
