2019 Tax Cap Increase Likely to be Two Percent
Wednesday, December 12, 2018
Posted by: Jori Figueroa
The Bureau of Labor Statistics reported the Consumer Price Index for All Urban Consumers (CPI-U) for November increased 2.2 percent over November 2017. 2018 inflation will be used to determine the allowable growth factor for the 2019-20 school year tax cap. The tax cap law allows school districts to increase their prior year’s tax levy by the allowable growth factor, which is calculated as two percent or the change in the Consumer Price Index for the year prior, whichever is less.
Based on the first 11 months of CPI-U data for 2018, ASBO New York projects the 2018 inflation rate will be 2.4 percent, which would make the allowable growth factor default to the 2 percent cap. The final allowable growth factor to determine the tax cap for the 2019-20 school year budgets will be determined in late January 2019.
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