Year two of New York’s tax “cap” law: Still not 2 percent

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In June 2011, New York state leaders responded to calls for property tax relief by enacting a law that placed new restrictions on how school districts (and municipalities) may increase their tax levies. 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. It does, however, require at least 60 percent voter approval for a school budget if the proposed levy increase exceeds a certain amount. That amount, called the “tax levy limit,” is calculated by each district according to a complex formula outlined in the law, and varies by district. Based on the state formula, Cazenovia’s  limit for this year’s budget was a 1.6 percent increase, and for the 2013-14 budget is a 4.93 percent increase in the tax levy. To learn more about how the tax “cap” law works, watch a video produced by the Superintendents’ Legislative Committee, by clicking on the image below. Screen Shot 2013-08-23 at 11.40.36 AM Interested in reading more about the tax “cap”?          

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