What is the tax levy limit?
|Tax Levy Vocabulary
• Tax Levy:
• Tax Levy Limit:
• Tax Rate:
At the end of June 2011, the New York State Legislature enacted a property tax “cap” that seeks to limit the annual increase in the tax levies of local governments and school districts. The new legislation will affect district planning starting with the 2012-13 school budget.
Although the new law has been referred to as a “2 percent tax cap,” it does not actually restrict any proposed tax levy increase to 2 percent. What it does is establish a tax levy limit (which will be determined by each district according to an eight-step, complex formula dictated by the law, and will vary by district) that determines the number of votes needed to pass a school budget.
Find out more about this legislation by reading the articles below.
Please note: This information will be updated as clarifications and new information regarding the legislation are made available at the state level.
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Property Tax Levy Limit Q & A
Read some common questions about the new property tax legislation.
New York State property tax legislation overview
Read a summary of the new legislation and the impact expected by district leaders.
Why it’s NOT a “2 percent tax cap”
Although the new law has been referred to as a “2 percent tax cap,” it does not restrict any proposed tax levy increase to 2 percent, nor does it prohibit individuals’ property taxes from increasing more than 2 percent.
The three tax levy numbers
During the school budget development process, taxpayers will hear three sets of numbers: the tax levy limit, the maximum allowable levy, and the proposed tax levy. Find out what each number represents.
A look at the exemptions under the law
It is possible for a district to propose a school budget that carries a tax levy that is above the limit and still only need a simple majority for it to pass. This is because the new law allows certain exemptions to be excluded from the tax levy limit.
Mandate relief measures and the tax “cap”
The tax “cap” legislation was approved with a package of changes intended to control school districts and local governments spending. These included the creation of a Mandate Relief Council to curb some of the laws and regulations that lead to escalating expenses for school districts and local government.