Property Tax Cap

On June 24, 2011 Governor Andrew Cuomo signed into law Chapter 97 of 2011, establishing a property tax cap in New York State.  While by no means comprehensive, this is the first step in a series of many which will allow local municipalities in New York State to control the tax burden on their residents. 

Major components of the law will take effect beginning in 2012.  At that point, no local governments or school districts (with the exception of New York City and "the big 5" school districts) will be able to increase their property tax levies by more than 2% or the rate of inflation - whichever is less.  The only way to override this would be through a local law that would need to be passed by 60% of the voters. 

The legislation also enacted about $127 million in mandate relief to schools and local governments.  While not all that impressive, it is a step in the right direction for mandate relief to local communities.  It should however be kept in mind that if more is not done to relieve burdensome unfunded mandates on municipalities then a property tax cap will only serve to hinder the ability of these governments to provide the appropriate programs and services for their residents.

Not included in the Property Tax legislation, but very closely linked to it, was a bill that would have allowed school districts to issue bonds to cover teacher pensions and creating an exemption from the property tax cap to cover those costs.  This would have effectively defeated the purpose of the property tax cap and done nothing to relieve the financial burden placed on local tax payers.  Governor Cuomo rightfully vetoed this legislation after it passed both houses of the New York State legislature.  His willingness to stand up to special interests has prevented New York State residents from continuing to pay the ever increasing costs of our state pension system on their own.

The Amherst Chamber of Commerce applauds the New York State Legislature and Governor Cuomo for passing the vitally important property tax cap legislation.  Property taxes in the State are out of control, forcing families out of their homes and making our businesses less competitive throughout the Country.  The property tax cap recently signed into law is a positive first step in providing relief for all residents and businesses in New York.  We also support Governor Cuomo's veto of the bill that would have allowed school districts to borrow thousands of dollars, circumventing the intent of the property tax cap.