Property Tax Cap Set at 2 Percent for 2020

July 15th, 2019

Property tax levy growth for local governments with fiscal years that close on Dec. 31 will be capped at 2 percent for the 2020 fiscal year, according to State Comptroller Thomas P. DiNapoli. This figure affects the tax cap calculations for all counties, towns, fire districts, 44 cities and 10 villages. The tax cap, which first applied to local governments in 2012, limits tax levy increases to the lesser of the rate of inflation or 2 percent with some exceptions, including a provision that allows municipalities to override the tax cap. Governments that want to raise taxes above the cap need at least 60 percent support, such as three of five members on a town board.

Comptroller DiNapoli said:

“The allowable levy growth will be 2 percent for the second year in a row, however, mixed economic signals may require local governments to respond to changing financial conditions. Local officials should be remain vigilant when crafting their budgets.”