New York state’s 2 percent property tax cap is actually closer to 4.6 percent statewide for school districts because they can exclude from the cap some of their increases in employee pension payments, according to a report by the Empire Center in Albany.
If it weren’t for the pension payment exclusion, the report says, the average tax cap for school districts would be 2.7 percent — about the same as last year’s 3 percent statewide average.
“The pension exclusion undermines the effectiveness of a tax cap law that is otherwise
well-structured to balance tax restraint with flexibility for local voters in the long run,” said the report, written by E.J. McMahon, senior fellow at the conservative think tank.
The pension provision was criticized in 2011 when lawmakers voted on the tax cap. The 2 percent cap can also be exceeded if local governments and school districts have large lawsuit settlements, revenue from new housing developments or businesses or other factors…..
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