The new tax levy limit and how it affects our schools

In June 2011, the New York State Legislature passed and the Governor enacted a property tax levy limit, commonly referred to as a cap, to limit the annual increase in the tax levies of local governments and school districts. This complex new law affects our school district's 2012-13 budget planning process.

Although the new law has been referred to as a “2 percent tax cap,” it does not, in fact, restrict any proposed tax levy increase to 2 percent. What it does is establish a tax levy limit (which will be determined by each school district according to an eight-step, complex formula dictated by the law, and will vary by district) that determines the number of votes needed to pass a school budget.

Schoharie Schools and other districts in our area and across the state are challenged with both explaining the impact of the tax levy cap and working within its confines, while still endeavoring to provide sound, basic education for our children that both meets state and federal requirements and provides them with a foundation for success in school, career and life.

To learn more about the tax levy limit:

• Read an overview of the law and its effects

• Why the tax levy limit is NOT a “2 percent tax cap”

• The three tax levy numbers

• Why the 'tax levy limit' isn’t the final levy limit: A look at exemptions under the law

• Mandate relief measures and the tax levy limit law

• Download a detailed explanation (pdf) of the tax levy limit of the legislation, Understanding New York’s Property Tax Levy Cap As It Relates to Public Schools, prepared by the Capital Region BOCES Communication Service and the Questar III BOCES' State Aid Planning and Communications Services. The publication answers some questions that parents, taxpayers and school staff members may have, based on what is known as of Oct 14.

Details about the tax levy limit continue to evolve. School districts await further clarification from the Office of the State Comptroller, Department of Taxation and Finance, State Education Department, Division of the Budget and the Governor’s office.

Please note that information about the tax levy limit will be updated as clarifications and new information regarding the legislation are made available.

[10/20/11]