WGXC-90.7 FM

State property tax cap set at 2 percent for 2023

Jul 14, 2022 12:45 am

Nick Reisman is reporting for State of Politics the state's cap on property tax increases will be set at its uppermost limit of 2 percent this year, state Comptroller Tom DiNapoli's office announced on July 13. New York sets its property tax limit to the rate of inflation or at 2 percent, whichever is lower. This is the fourth time since 2019 that municipal governments had their tax levy capped at that amount. The decision comes as increased federal aid for local governments related to the COVID-19 pandemic is set to end. The 2 percent limit will impact tax calculations for counties, towns, fire districts, 44 cities and 13 villages that have fiscal years aligned with the calendar year. The cap does not apply to the state's largest municipality, New York City. The inflation factor for this year has been calculated at 7.17 percent and more than half of the state's various municipalities that set their budgets on the calendar year could have costs that exceed the amount of pandemic aid they are set to receive. New York's tax cap has been in place for the last 10 years as a mechanism to limit growth in the highest property taxes in the country. Read the full story at nystateofpolitics [dot] com.