Sunday, March 4, 2012

The Tax Cap: Educating the Public May Not Be Easy

As most of us know, the NYS Legislature passed a landmark Property Tax Cap law that requires that property taxes levied by local governments and school districts not increase by more than either 2% or the Consumer Price Index (CPI) - whichever is lower.

Yet another problem for school districts is that the public may not realize that there are exemptions to the tax cap. "Court judgments, growth in a school district, capital projects, and employee pension costs can allow the taxes to to beyond the 2% limit."

Some have speculated that the public, expecting a 2% limit on the amount which a school district can increase its annual tax levy but getting a higher percentage presented to them, may mistakenly believe that school officials are attempting to circumvent the the law.

It is important that we all understand this new law so that school districts are not unfairly accused of trying to find ways to avoid compliance.

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