ALBANY, N.Y. — Property-tax levy growth for local governments will be capped at 0.68 percent for 2017, down “slightly” from the 0.73 percent in 2016.
The latest inflation figure affects the tax-cap calculations for local governments that operate on a calendar-based fiscal year from Jan 1 through Dec. 31, the office of New York State Comptroller Thomas DiNapoli said in a news release issued Monday.
The local governments include all counties, towns, fire districts, 44 cities, and 10 villages, DiNapoli’s office said.
“In what is becoming the norm, New York’s local governments must cope with extremely limited growth for property taxes to stay within the tax cap,” DiNapoli said in the release. “Low inflation has positive effects for consumers, but it also reflects an uncertain economic environment. Local officials have faced growing fixed costs and limited budget options for years, but 2017 will necessitate even tougher financial choices.”
The tax cap, which first applied to local governments beginning in 2012, limits tax levy increases to the lesser of the rate of inflation — or 2 percent — with some exceptions. Those exceptions include a provision that allows municipalities to override the tax cap.
The 2017 fiscal year is the fourth consecutive year that local governments have had their levy growth capped at less than 2 percent, DiNapoli’s office said. It also represents the second straight year that it has been capped at less than 1 percent.
DiNapoli also said that property-tax levy growth for school districts was capped at 0.12 percent for the 2016-17 fiscal year.
Contact Reinhardt at ereinhardt@cnybj.com