Property tax levy growth for school districts statewide capped at 2% for second year in a row

The cap protects the school portion of property taxes from jumping with the rise in inflation, but it also forces local school districts to do more with less.

Jonathan Gordon

Jan 13, 2023, 1:19 AM

Updated 501 days ago

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School districts in New York will only be able to raise their property tax levy by 2% for the second year in a row, according to the state Comptroller's Office.
The cap protects the school portion of property taxes from jumping with the rise in inflation, but it also forces local school districts to do more with less.
"We begin to build budgets to try to protect, preserve and expand the educational program based upon what our children need at the most conservative level we possibly can," says White Plains Superintendent of Schools Dr. Joseph Ricca.
Districts can propose a higher budget as long as 60% of the voters approve it.
"School districts around the state are experiencing different stressors and certainly, there could be districts that need to do that and there are communities that support it," says Ricca.
But the measure serves as a safety net for property owners who won't see the bulk of their taxes rise with the rate of inflation.
Pearl River-based realtor Jessica Lampone believes the cap will have a positive effect on homeowners and those looking to buy.
"Hopefully, maybe, we can see people kind of be able to even it out figure it out financially work for them and they can stay here and raise a family here," says Lampone.
The state is also capping property tax increases at 2% for its 10 largest cities, including Yonkers.
Gov. Kathy Hochul promised to increase state aid to local districts by $2.7 billion in the upcoming budget -- a number sure to help.
Districts are presenting their proposals now ahead of the May 16 date for school budget elections.


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