After years of debate, the New York State Legislature has passed a law establishing a cap on the property tax levy that local municipalities, including school districts, can raise each year.
The law caps annual increases in the local property tax levy at 2% or the rate of inflation, whichever is less, with several exemptions, including some pension cost increases, capital expenditures, and court judgements.
While residents will still have control over their local school budgets, the new law will affect how school budget votes are conducted:
- If a school district proposes an annual budget that calls for a tax levy increase that is at or below the cap for that year, it would need a simple majority (50% plus 1) to pass its budget.
- If a school district proposes an annual budget that calls for a tax levy increase that is greater than the cap for that year, it would need a 60% super-majority to pass its budget.
- School districts will still have up to two opportunities to present their budget proposals to voters. However, if a school district fails to gain voter approval on the second vote, then its tax levy increase would be capped at 0% – meaning the school district would not be allowed to raise any more money through local property taxes than it did in the previous school year. It’s unclear at this point whether any exemptions would be allowed under a contingent budget.
“The tax cap is going to have serious implications for Broadalbin-Perth, as it will for every other school district in New York State,” said Superintendent of Schools Stephen Tomlinson. “Our goal this year will be to provide our community with as much information about these implications as possible. We don't want there to be any surprises for members of our community when the board adopts our budget proposal in February, and we want the voters who come to the polls in May to be well-informed.”
Check the Broadalbin-Perth website in the coming weeks for more detailed information about the tax cap and what it means for B-P. Upcoming features include:
- B-P and the Tax Cap: An Overview
- The New Budget Development Calendar
- Exemptions from the Tax Cap
- Budget Votes Under the Tax Cap
District residents who would like to know more about the tax cap and how it will affect B-P are encouraged to submit their questions to Patriot Plain Talk, http://patriotplaintalk.blogspot.com.