bookmark
Cobleskille-Richmondville page header

open book
Upcoming Events

Word of the Month for July - Cooperation

 

 

August 4, 2014

Board of Education Meeting
Golding Middle School Library at 7:00 p.m.

 

 

 

Nov. 22, 2011  - Updated Jan. 26, 2011

tax levy limit informationTax levy limit formula

The following formula demonstrates how a school district would calculate its “tax levy limit,” as well as the “maximum allowable levy."

Rolling your mouse over or clicking on the phrases in green will result in a pop-up explanation of that term.

As always, parents, staff, students and taxpayers are urged to voice their opinions on school budget concerns to our elected leaders. Click here for elected leaders' contact information.  

Calculating the Tax Levy Limit

 

Prior year tax levy

Prior year tax levy is the total amount of money a school district levied in taxes for the current school year.

multiplied by

Tax base growth factor, if any

 

The Commissioner of Taxation and Finance will issue a Quantity Change Factor (the allowable tax base growth) that reflects any increase in the full value of taxable property by Feb. 1. This number will never be a negative. A change in this number would be caused by a change in assessments - not a change caused by the splitting or merging of property parcels.

plus

PILOTs receivable during prior year

minus

A PILOT is a payment in lieu of taxes that a school district receives. As an incentive to encourage taxable infrastructure or other facilities that create a public benefit in the community, a PILOT may be negotiated to limit or defer the property taxes on a developer for a specified amount of time. In exchange for paying taxes, the developer pays a pre-arranged fee, or a PILOT.

Taxes levied for exemptions during prior year

Court orders or judgments

A school district can increase the levy above the levy limit for costs resulting from court orders or judgments against the district that arise out of tort actions that will be paid in the coming year. The adjustment can only be made for costs of those court orders or judgments that exceed 5 percent of the total prior year's levy. Tax certioraris and breach of contract actions are not included in this exemption.

Allowable exemption for pension increase

If the cost of annual growth in the employer pension contribution rate is above two percentage points, any additional cost above that may be exempt. For instance, if a rate increases from 10 percent to 12.6 percent, only the 0.6 percent would be exempt.

Capital Local Expenditures

The local tax levy associated with budgeted expenses resulting from construction or improvement of school facilities or equipment and transportation dept service is exempt. A Capital Expenditures is the levy money needed to support a capital project or a bus proposal. This means that the portion of debt a school pays for new/leased buses and school construction that is not re-reimbursed by the state is exempt.

equals

Adjusted Prior Year Tax Levy

multiplied by

Allowable levy growth factor (lesser of 2% or CPI)

This is the inflation factor. The growth in the levy is limited to 2 percent or the Consumer Price Index, whichever is less. The Consumer Price Index is set by the U.S. Bureau of Labor Statistics

minus

Payments in lieu of taxes (PILOTS) receivable in the coming year

plus

Available carryover, if any

If a district passes a budget with a tax levy set below the district’s tax levy limit, it can then add that difference to the upcoming tax levy (up to 1.5 percent) and still need a simple majority to pass.

equals

The District's “TAX LEVY LIMIT”

This is the school district’s tax levy limit before exceptions are added in.

plus

Coming school year exemptions
(applicable portion of capital levy and court orders, pension costs)

equals

The district's “MAXIMUM ALLOWABLE LEVY”

 

This is the maximum tax levy a school district can present for vote and still need a simple majority (50 percent plus 1) to pass.

For a printable PDF of the formula and definitions, please download a PDF of New York’s Tax Levy Limit Formula: How does it add up? from Capital Region BOCES and Questar III.

Return to the Tax Levy Limit Information page

 

 

 


 

 

"