Property tax levy growth will be capped at 2% for 2024 for local governments that operate on a calendar-based fiscal year, according to data released Thursday by State Comptroller Thomas DiNapoli. This figure affects tax cap calculations for all counties, towns, and fire districts, as well as 44 cities and 13 villages.
“Allowable tax levy growth will be limited to 2% for a third consecutive year,” DiNapoli said. “Although the rate of inflation has begun to decrease, it still poses a challenge for local governments and their budgets. As local governments spend down their one-time federal pandemic assistance, officials will need to carefully develop and balance their budgets for the coming year.”
In accordance with state law, DiNapoli’s office calculated the 2024 inflation factor at 6.26% for those local governments with a calendar fiscal year, well above the 2% allowable levy increase, and indicative of the higher costs facing these localities.
The tax cap, which first applied to local governments and school districts in 2012, limits annual tax levy increases to the lesser of the rate of inflation or 2% with certain exceptions including a provision that allows municipalities to override the tax cap.
