Tax cap will stay under 1 percent

NEW YORK STATE (7/27/16)--Property tax levy growth for local governments will be capped at 0.68 percent for 2017, decreasing slightly from 2016, when it was 0.73 percent. This announcement by State Comptroller Thomas P. DiNapoli was made last week, indicating 2017 will be the second straight year with a cap below 1 percent. The latest inflation figure affects the tax cap calculations for local governments that operate on a calendar-based fiscal year (Jan 1. -- Dec. 31) -- which includes all counties, towns, fire districts, 44 cities and 10 villages.
"In what is becoming the norm, New York's local governments must cope with extremely limited growth for property taxes to stay within the tax cap," said DiNapoli. "Low inflation has positive effects for consumers, but it also reflects an uncertain economic environment. Local officials have faced growing fixed costs and limited budget options for years, but 2017 will necessitate even tougher financial choices."
The tax cap, which first applied to local governments beginning in 2012, limits tax levy increases to the lesser of the rate of inflation or 2 percent with some exceptions, including a provision that allows municipalities to override the tax cap.
The 2017 fiscal year is the fourth year in a row that local governments have had their levy growth capped at less than 2 percent and the second year in a row that it has been capped at less than 1 percent. By comparison, property tax levy growth for school districts was capped at 0.12 percent for the 2016-17 fiscal year.
For the list of allowable levy growth factors for all local governments, visit: http://www.osc.state.ny.us/localgov/realprop/pdf/inflation_allowablegrowthfactors.pdf
For access to state and local government spending and for information on 50,000 state contracts, visit Open Book New York.