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:
Click on the links below to learn more about the tax levy cap in New York state:
- 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.
- Tax cap VIDEO
- "Three Tax Levy Numbers" fact sheet (PDF)
- "Tax Levy Limit Formula" fact sheet (PDF)
- Guide to navigating New York's property tax levy cap