The NY State Comptroller just announced a 2 percent cap on school district taxes for the 2024-2025 tax year. Don’t be fooled into thinking that this will stop your property taxes from going up even more this year!
The Tax Cap Myth
NY has long talked about, and implemented annual caps on school district taxes, which often make up the bulk of local property tax bills.
Of course, that hasn’t really stopped your annual tax bill going up so far has it?
There are several reasons for this. One of the main ones being that this is really voluntary for school districts throughout the state. It is quite common for school districts in the state, and across Long Island to vote to blow through these caps each year. So, it’s not really a cap at all. More of a suggestion that looks great in the media.
Tax Rates Vs. Tax Assessments
Another major factor that most overlook here is the difference between tax rates and assessed values. It is a combination of both of these factors which determine your actual bill.
So, even if school districts did not raise the effective tax rate by more than 2% on their share of your tax bill, if the county deems your property value has increased, then your tax bill will still go up anyway.
What is somewhat perplexing here is that the media and official data keeps proclaiming that housing prices keep on going up. Even in spite of the fact that many homeowners are finding it nearly impossible to sell their homes at any price, and over 70% of those that can find they have to accept less than they were asking for.
Just perhaps, your property’s tax assessed value should be much lower than it is.
Other Line Items On Your Property Tax Bill
It is also wise to remember that school taxes are just one of many line items and taxes on your combined annual property tax bill.
Depending on your jurisdiction there can also be taxes for fire services, trash collection, special assessments, and more.
In years that school district caps are adhered to, it is quite possible for your tax bill to go up due to big hikes on these other items.