DiNapoli: Tax Cap Remains At Two Percent for 2020
Property tax levy growth for local governments with fiscal years that close on Dec. 31 will be capped at 2 percent for the 2020 fiscal year, according to state Comptroller Thomas P. DiNapoli.
The figure affects the tax cap calculations for all counties, towns, fire districts, 44 cities and 10 villages.
“The allowable levy growth will be 2 percent for the second year in a row, however, mixed economic signals may require local governments to respond to changing financial conditions,” DiNapoli said. “Local officials should be remain vigilant when crafting their budgets.”
The tax cap, which first applied to local governments in 2012, limits tax levy increases to the lesser of the rate of inflation or 2 percent with some exceptions, including a provision that allows municipalities to override the tax cap.
During the 2014 through 2018 fiscal years, municipalities with a fiscal year ending on Dec. 31 had their levy growth capped at less than 2 percent.