Tax Cap Information for Towns

An official guidance document has been jointly published by the Department of Taxation and Finance and the Department of State for compliance with the tax levy limit as set forth in General Municipal Law §3-c. As a result, we have removed our own interpretation of the statutory provisions, which was prepared earlier.

The official guidance document is reviewable at the following location:

http://www.tax.ny.gov/research/property/capguidelines.pdf

After reviewing the guidelines and the needs for the appropriations for the next fiscal year, you may determine that an override in one or more areas may be necessary. In such case, a comprehensive local law override would be appropriate.

There may be specific questions and issues that are in need of clarification. You may wish to consult with your town attorney, legal advisor, or the legal staff at the Association of Towns.

For guidance on adopting a local law, please see the following:

http://www.dos.state.ny.us/lg/publications/Adopting_Local_Laws_in_New_York_State.pdf

The Comptroller's Office has established the following web page with levy cap information:

http://www.osc.state.ny.us/localgov/realprop/index.htm

The Comptroller's Office offers direct assistance with the levy cap Monday through Friday from 8:00 a.m. to 4:00 p.m. at (518) 473-0006.

Model Local Override Law

Local Law No _________ of the year 2011

Town of _______________________, County of ____________________

A local law to override the tax levy limit established in General Municipal Law 3-c

Section 1. Legislative Intent

It is the intent of this local law to override the limit on the amount of real property taxes that may be levied by the Town of ___________, County of ______________ pursuant to General Municipal Law § 3-c, and to allow the Town of ___________, County of ______________ to adopt a town budget for (a) town purposes (b) fire protection districts and (c) any other special or improvement district governed by the town board for the fiscal year ______ that requires a real property tax levy in excess of the "tax levy limit" as defined by General Municipal Law § 3-c.

[add more justifications if you like]

Section 2.  Authority

This local law is adopted pursuant to subdivision 5 of General Municipal Law § 3-c, which expressly authorizes the town board to override the tax levy limit by the adoption of a local law approved by vote of sixty percent (60%) of the town board.

Section 3.  Tax Levy Limit Override

The Town Board of the Town of ______________, County of ___________________ is hereby authorized to adopt a budget for the fiscal year _____ that requires a real property tax levy in excess of the limit specified in General Municipal Law, §3-c.

Section 4.  Severability.

If any clause, sentence, paragraph, subdivision, or part of this Local Law or the application thereof to any person, firm or corporation, or circumstance, shall be adjusted by any court of competent jurisdiction to be invalid or unconstitutional, such order or judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, or part of this Local Law or in its application to the person, individual, firm or corporation or circumstance, directly involved in the controversy in which such judgment or order shall be rendered.

Section 5.  Effective date.

This local law shall take effect immediately upon filing with the Secretary of State.