Posted 6/30/11

Adopted by the Legislature last week, the tax cap seeks to limit the annual increase in the tax levies of local governments and school districts. While the new law is being advertised as a 2 percent cap on annual property tax levy increases, several provisions dictate that the actual increases will vary from that figure. This is primarily due to a series of costs that are exempt from the cap, including some pension contributions and spending for voter-approved capital projects.

The legislation also included a package of items that legislators said was intended to offer districts some “mandate relief,” referring to state laws and regulations that drive up costs — and ultimately taxes.

Related link: New York State School Boards Association Press Release

Voters will still decide on school budgets in New York.

The 2 percent number, (or inflation, if it is less) actually refers to the figure that determines what level of voter support is needed for a school budget to pass. If the tax levy increase is above the cap —after accounting for exemptions — the support of a supermajority (60 percent) of voters would be required for budget passage. If it is within the cap, a simple majority is needed for budget approval.

"We are still gathering details about the property tax cap and what it means for us," Superintendent Robert DeLilli said. "We wanted to give the community an overview of the information that is available and will continue to do so as we learn more about what these changes will mean for Gloversville.”