Comptroller: Property Taxes to Grow Less Than 1% Under Cap

Property tax increases may be limited to less than 1 percent next year for more than 1,800 jurisdictions around the state, which could be problematic for local governments, New York’s comptroller reported Monday. That includes all counties, towns and fire districts, as well as 44 cities and 10 villages whose fiscal year starts Jan. 1.

“Local government officials need to brace for the lowest growth in their property tax revenue in the tax cap era,” Comptroller Thomas DiNapoli sad. “Even tougher budget choices may be required on staffing levels, delivery of services, fund balance reductions and deferral of capital and infrastructure projects.”

The cap on property tax hikes, which began in 2012, limits increases to the lesser of the inflation rate or 2 percent, with some exemptions, like pension costs. The limit for 2016 is 0.73 percent.

A provision in the law lets municipalities override it with 60 percent board approval.

This article appeared in print on page 5 of the July 21st, 2015 edition of Hamodia.