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School Finance
January 16, 2018

School district tax levy growth to be capped at 2 percent

Source:  NYSUT Research and Educational Services

Property tax levy growth for school districts will be capped at 2 percent before adjustments for the 2018-19 school year, according to NYSUT's Research and Educational Services Department.

The Bureau of Labor Statistics recently announced that the average increase in the Consumer Price Index was 2.13 percent for the 2017 calendar year. This is important because under the state's tax cap law, allowable increases in the property tax levy are based on either 2 percent or the rate of inflation, whichever is less.

Districts will use a 2.00 percent inflation factor when they are calculating their tax levy limit for the 2018-19 school year. Districts must complete a nine-step formula to calculate their tax levy limit and submit this data to the New York State Office of the State Comptroller by March 1.