For the first time since 2019, property tax levy growth for school districts will be capped at 2%, an increase from 1.23% last year, according to state Comptroller Thomas P. DiNapoli.

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%. School districts may override the cap with 60% voter approval of their budget. DiNapoli’s office calculated the inflation factor at 4.7% for those with a June 30, 2023 fiscal year end.

“School district and municipal officials must remain fiscally cautious to stay under the cap as they prepare their budgets,” DiNapoli said. “Even with significant funding from the state and federal governments, school and local communities are faced with the rapid increase in inflation, pandemic surge, and trying to retain and recruit employees.”

The 2% levy limit affects the tax cap calculations for 676 school districts and 10 cities with fiscal years starting July 1, 2022.