For the third consecutive year, inflation is allowing local governments across New York to increase their property tax levies by the maximum amount of 2%, according to state Comptroller Tom DiNapoli’s office. This development will impact all counties, towns, and fire districts in New York, along with 44 cities and 13 villages.
The property tax cap in New York restricts levy growth to 2% or the rate of inflation, whichever is less. Since its introduction in 2012, it was primarily influenced by flat consumer price growth. However, recent years have seen a consistent rise in inflation, providing local governments with greater flexibility in tax collection. There are instances where the cap can be overridden at the local government and school district levels. Notably, New Yorkers typically face some of the nation’s highest property taxes.
Although inflation rates have recently declined, Comptroller DiNapoli highlighted that the enduring high inflation rates pose challenges for local governments
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