Tax cap may complicate local budgets

Jul 21, 2015

The tax cap adopted by New York State nearly three years ago will likely put a crimp on local governments in 2016.

State Comptroller Thomas DiNapoli is warning local governments "to brace" for the fiscal restraints of the property tax cap.
Credit WBFO News file photo

Under the tax cap, levy increases are limited to the lesser of the rate of inflation or two percent. With inflation down, State Comptroller Thomas DiNapoli says local governments need to "brace" for property tax growth capped at less than one percent for the 2016 fiscal year.

"In the past you've seen property taxes increase on a yearly basis," said State Senator Timothy Kennedy Monday.

"Now, what the state has done, we've put in place a measure to insure that these municipalities are living within their means."

According to the state comptroller, local governments may be required to make tougher budget choices on staffing levels, delivery of services, fund balance reductions, and infrastructure projects.