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Tax cap for towns and counties set at 2%

Tax cap for towns and counties set at 2%

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DiNapoli

State Comptroller Thomas DiNapoli.

Local governments will have a tax cap for next year's budgets of 2%, State Comptroller Thomas P. DiNapoli announced today.

The 2% tax cap affects all counties, towns and fire districts, as well as cities and villages whose fiscal year is Jan. 1 to Dec. 31. 

"As the economy recovers from the pandemic, local governments have seen some revenues rebound and have benefited from one-time federal financial assistance," DiNapoli said. "At the same time, the risk of inflationary cost increases and the need for investments that will stimulate economic growth and fund essential services may lead to challenging budget decisions ahead.”

The tax cap first applied to local governments and school districts in 2012, and limits the annual tax levy increase to the lesser rate of inflation or 2%, with a provision that allows local governments to override the tax cap.

This is the third time since 2019 the cap was set at 2%.

The cap for school district taxes is 1.23% this year, the second consecutive year it is under 2%.

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