The "Tax Cap" in New York State

  • New York places restrictions on how school districts (and municipalities) may increase their tax levies. It requires at least 60 percent voter approval for a school budget if the proposed tax levy increase exceeds a threshold, known as the tax levy limit, which is unique to each district and calculated using a state formula.  
    Although often referred to as a “2 percent tax cap,” the law does not, in fact, restrict any proposed tax levy increase to 2 percent. The New York state comptroller released a report on "three years of the tax cap" in 2015 (PDF), and its 2014-15 data showed that of the state’s 700 school districts: 
    • 38 had a tax levy limit equal to 2 percent, but only when rounded.
    • 363 had a limit greater than 2 percent.
    • 69 had a limit less than 1 percent.
    Click on the links below to learn more about the tax levy cap in New York state: