The state-mandated real property tax cap will remain at this year’s rate of 2 percent. The cap is set at either 2 percent or the rate of inflation — whichever is lower. Last week, the state Comptroller’s Office projected that inflation will grow by 2.9 percent in 2013.
This will be the second year that local governments have had to prepare their budgets under the cap. About 80 percent of local governments and 90 percent of school districts stayed under the cap during its first year.
Local governments are preparing their budgets for the 2013 fiscal year, which for them starts Jan. 1. Certain costs, such as pension costs that exceed 2 percent, are exempt from the cap.