What is the Tax Cap
It is not a cap, nor is it two percent. Commonly called the Tax Cap, this legislation is actually not a cap at all, but instead provides guidelines for the level of voter approval that is needed to approve a budget. A complicated 8-component formula is used to determine a maximum tax levy increase that requires only 50% voter approval. Any levy increase above that calculation may be proposed, but requires a 60% voter approval.
This publications below provide information to help you understand the new legislation and implications it has on school funding.
In this first year of New York’s property tax cap, details about its provisions and implementation continue to evolve. This publication answers some questions that parents, taxpayers and school staff members may have, based on what is known as of this printing. School districts continue to await further clarification from the Office of the State Comptroller, Department of Taxation and Finance, State Education Department, Division of the Budget and the Governor’s office. Additional details will be communicated as they become known.
A NYSSBA analysis of the new legislation found that if the cap had have been in place this year, NY collectively would be short an estimated $3.3 billion between 2010-2011 and 2013-2014 just to meet basic expenditures for payroll and other personnel costs (such as salaries, pensions, health insurance, which are collectively bargained or mandated by law.)