New York Comptroller Tom DiNapoli says local governments can raise property taxes by no more than two percent next year. But inflation is running higher than two percent, and municipalities face the potential threat of cuts in federal funding too.
New York law caps property tax increases at either two percent or the rate of inflation, whichever number is lower. For most of this year, inflation has been higher. That means the cost of salaries, textbooks, and asphalt have increased faster than local governments are allowed to raise taxes.
DiNapoli warned local officials to budget cautiously. This is the first time since 2013 that municipalities have been in this position. They can override the tax cap only with the approval of 60 percent of voters.