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2% Property Tax Cap Set for New York in 2023

For the fourth time since 2019, New York’s property tax cap will be 2%, for 2023.  The property tax limit is set to the rate of inflation or at 2% whichever is lower. Since we are experiencing soaring inflation rates, which just recently hit a staggering 9.1% in June, the cap will lock in at 2%.

What is the property tax cap law?

The property tax cap law establishes a limit on the annual growth of property taxes levied by local governments and school districts that are outside the 5 boroughs. The cap has been in effect since the fiscal year beginning in 2012.

“Allowable tax levy growth will be limited to two percent for a second consecutive year,” said State Comptroller, Tom DiNapoli. “Just as local governments are receiving their final round of federal funding under the American Rescue Plan Act, they are facing economic challenges that will likely drive costs higher than expected or planned, making it harder to adhere to the tax cap as they prepare their budgets for 2023.”

This year’s inflation factor has been calculated at 7.17% and more than half of the state’s county and town governments, as well as cities and villages that set their budgets on the calendar could have costs that exceed the amount of pandemic aid they are set to receive.

Wrap Up

Since 2012 this property tax cap law has been in place in the state of New York to try and limit some of the taxes citizens must pay in an already astronomical property tax-heavy state. For the last 4 years, the tax cap has had to stay capped at 2% because of the soaring rates of inflation we have seen over the years. If you ever have any property tax or any other tax-related questions, give us a call.

 
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