Tax Cap

Fifteen years ago, New York State established a tax cap that limits how much a school district can increase its property tax revenue each year. This cap is determined using a formula that includes inflation, property values, and certain exemptions. The goal of the tax cap is to help control and stabilize property tax increases over time.

If a school district proposes a tax levy increase that is at or below the tax cap, the budget can be approved by a simple majority vote. However, if the proposed tax levy exceeds the tax cap, the budget must receive at least a 60% supermajority vote to pass.

It is also important to understand that the tax cap does not limit an individual property tax bill. Instead, it limits the total amount of tax revenue the district can collect. Individual tax bills may still increase by more or less than 2%, since they are also affected by factors such as property assessments, which can change yearly.

Tax Levy

The tax levy is the total amount of money a school district collects through property taxes to support its annual budget. This revenue is used to fund expenses such as salaries, employee benefits, instructional programs, and building maintenance or improvements.

The amount needed for the tax levy is based on the district’s overall financial needs. It can also be influenced by factors such as state aid, changes in student enrollment, and the need for capital projects or facility upgrades.

• TAX CAP: Limits the amount of property tax revenue that a school district can raise each year.

• TAX LEVY: The total amount of money a school district raises through property taxes to fund its budget.

• SIMPLE MAJORITY: 50% of all people who vote must vote yes for a budget to pass.

• SUPER MAJORITY: 60% of all registered voters must vote yes for a budget to pass.