Last week, State Comptroller DiNapoli announced that property tax growth for local governments will be capped at less than 1% for the 2016 fiscal year under the state’s real property tax cap – the lowest since the cap became effective in 2011.
The state’s real property tax cap, which was enacted in 2011 and was first applied to local governments beginning in 2012, limits tax levy increases to the lesser of the rate of inflation or 2%, with limited exceptions. Municipalities can override the cap in some situations.
This shows that the state’s tax cap is working. While we still have more work to do – the state hasn’t taken any steps to reduce taxes yet – at least we’re not seeing the five, six or seven percent annual increases that were routine before the cap went into effect.