The debate is on in Albany on whether to make permanent the so-called 2 percent cap on levies of most taxing entities in this state.

The Senate and the governor say yes; the Assembly hasn’t decided yet.

Most of the numbers indicate the cap has had positive effects since it was initiated in June 2011 and should be retained.

The tax cap is not nearly as simple as it may seem. For one thing, it does not mean that your taxes can’t go up more than 2 percent a year.

It is designed to restrict a taxing entity’s levy from rising more than 2 percent or the rate of inflation, whichever is lower. The state has a formula that tells each school district or municipality its individual cap percentage.

The tax levy is not the tax rate. Levy is the amount of money that has to be raised by taxes, after all other sources of revenue are accounted for. The tax rate is the dollar amount per $1,000 of assessed property value.

The tax levy’s rise or — more rare — its fall is a better indicator of whether someone’s taxes are going up or down than the tax rate.

Here is the process for computing an entity’s limit on a tax levy:

1. Start with the prior year’s tax levy.

2. Multiply it by the tax-base growth factor. (This is a number, provided by the Department of Taxation and Finance, that represents new construction that adds value to the tax base.)

3. Add any payments in lieu of taxes (PILOTs) received during the prior year.

4. Subtract the taxes levied for exemptions during prior year for contributions to retirement plans.

5. The number left is the adjusted prior year tax levy.

6. Multiply the allowable levy growth factor.

7. Subtract PILOTs receivable in the coming year.

8. The number left is the tax-levy limit.

So has the limit, regardless of its complicated nature, been good or bad?

According to the Business Council of New York State, the New York Farm Bureau and other important organizations, it has been a godsend.

Figures from the Empire Center for Public Policy and the Public Policy Institute indicate that, in the four years it has been in effect, it has saved state taxpayers $7,626,262,366. In the North Country alone, it has saved $142,435,067.

If a town, village or other municipality wants to exceed its tax cap, a majority vote of elected board members is required.

If a school district wants to exceed its cap, the rules are different, because those budgets are decided by public vote. A simple majority vote won’t carry a school budget that exceeds its cap. A “supermajority” of 60 percent of the vote is needed.

The tax cap has given taxpayers more control, curbed spending and made local government and school officials more accountable.

We think it is appropriate to help the taxpayers and challenge the governments. The tax cap should remain.

© 2015 Press-Republican