SPEAKER SILVER UNVEILS ASSEMBLY'S PROPERTY TAX CAP

LEGISLATION TO PROVIDE RELIEF FOR HARDWORKING FAMILIES
ACROSS NEW YORK STATE

Measure would restrict property tax increases to two percent annually

Assembly Speaker Sheldon Silver today unveiled legislation to provide real relief for hard working men and
women across New York State by capping local property taxes at two percent while at the same time
including important safeguards to ensure communities are able to provide critical services for their citizens.
The legislation prohibits local governments and school districts from exceeding the two percent threshold on
the total tax levy and requires a 60 percent vote to override the levy.

“Our message to property owners who have struggled under the burden of soaring taxes is simple,” said
Speaker Silver (D-Manhattan). “Hard working families are saddled with some of the highest property taxes
in the nation and need real relief in order to be able to live and raise their children in New York State. Just as
families have to live within a budget, so too should our government. With this legislation, we are finally able
to bring property taxes under control and still provide critical services.”

The Assembly’s proposal is realistically grounded and includes important safeguards for local communities
in order to encourage growth and give them the ability to deliver critical services. Specifically, the bill
would:

 Provide a carryover provision of up to 1.5 percent from one year to the next of any amount in which
the previous year’s levy was below that year’s limit;
 Allow local governments and school districts to adjust the tax levy upward if there is physical or
quantity growth in the property base;
 Include a tax base growth factor to account for any increase in the full value of taxable real property;
and
 Exempt pension payments over two percent from the previous year and court orders and judgments
that exceed five percent of the total levy from the previous year.

The measure would maintain existing statewide budget timelines for school districts and requires a 60
percent voter approval to override the levy. If the budget is rejected, the school district may resubmit for
another vote or adopt a zero tax levy growth budget. School districts would be required to adopt a zero tax
levy growth budget if the proposal is twice rejected by voters.

“This property tax cap proposal is designed to save money for the working families across the state
struggling during these difficult economic times, while ensuring that our school districts and local
governments are not denied the ability to deliver critical services,” said Silver. “This model will allow for
adequate growth, without shortchanging our schools and communities.”

The tax cap would take effect for the 2012 fiscal year for local governments and the 2012-2013 school
budget year and includes a sunset provision that would coincide with provisions related to rent stabilization
in order to determine if the legislation is working as intended.

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