Sunday, July 03, 2011

Property Tax Cap Explained

What is it?

The allowable tax levy growth will be the lesser of 2 percent a year or the rate of inflation.

What's covered?

Property tax levies of all counties, cities, towns, villages, school districts and special districts outside of New York City and outside the Big 5 schools, including Buffalo, Rochester, Syracuse, New York City and Yonkers.

What's excluded?

Any taxes to support voter-approved school capital expenditures, any legal settlements that exceed 5 percent of a prior-year tax levy, any growth above 2 percentage points for pension contributions and any major growth in a community.

Can the cap be exceeded?

For municipalities, it can be exceeded with a vote of at least 60 percent of the governing body. For schools, the cap can be overridden by 60 percent of voters. School tax levies will be frozen if a school budget fails twice.

Any other provisions?

If a government or school raises taxes lower than the capped amount, it can carry over up to 1.5 percent of a potential tax increase to the next year. The goal is to encourage them to spend less than the cap, then have the ability to spend more in a subsequent year if they choose.

When does this take effect?

It starts in January for governments and in July 2012 for schools. It expires June 2016, but it will remain in effect as long as rent-control regulations for New York City and its suburbs are on the books. And those have been in effect since the 1940s.


Anonymous said...

Key words "Tax levy growth". Please define. Is that the total tax bill paid by the community, the tax bill paid by a resident or the rate of taxation? In other words, can my taxes go up by reassessing?

Anonymous said...

Looks to me like Baby Cuomo got himself a whole lot of face time, politicians collected a lot of campaign donations, Public Employee Unions spent a lot on TV advertising
Mr & Mrs Taxpayer

Gee, what will the politicians think of next to help us?

Charlie Hubbard said...

This legislation has the potential to be a big mess down the road mostly because it focuses on taxes instead of 'spending'.
If Albany had controll of it's spending and worthless mandates (that we could believe in) it might have a chance.
I wish I were not so sceptical of elected officials but their track record speaks for itself - the solution to every problem has been spend, spend, spend with near zero effort shown as to the productivity of that spending.

Anonymous said...

To clarify: Tax levy is the toal tax to be collected. Includes any increase or decrease associated with total assesments either from growth or decline the the tax base.

Can someone clalify: If the budget is defeated, MUST they put it up for a second vote? The implication is that is the case AS A SECOND DEFEAT REQUIRES A BUDGET WITH NO TAX INCREASE. But it does not specifically mention the requirement of that second vote.

SCATS said...

To Charlie ~~ In my opinion, this legislation was a wasted effort from the gitgo because we both know they have no intentions of really cutting spending. Of course, you are correct that cutting spending is what must be done. I just don't serious efforts at making that happen, not in Albany, not in Wash. DC and certainly not locally.

Anonymous said...

Memo to self:
1. Set up that telephone tree early next year. Lets get some "no vote" practice in early.

2, Continue to remind Cuomo the implications of the Triborough amendment.

Anonymous said...

No, they do not need to put budget up for second vote. They can put an amended budget in front of voters for consideration, put the same budget up again or adopt the contingency budget up to the contingency cap ( which, many times, carries a tax increase higher than the originally defeated budget).