New York Laws
Part 1 - General Provisions
2023-A - Limitations Upon School District Tax Levies.

(i) a tax levy necessary for expenditures resulting from court orders
or judgments against the school district arising out of tort actions for
any amount that exceeds five percent of the total tax levied in the
prior school year;
(ii) in years in which the system average actuarial contribution rate
of the New York state and local employees' retirement system, as defined

by paragraph ten of subdivision a of section nineteen-a of the
retirement and social security law, increases by more than two
percentage points from the previous year, a tax levy necessary for
expenditures for the coming fiscal year for school district employer
contributions to the New York state and local employees' retirement
system caused by growth in the system average actuarial contribution
rate minus two percentage points;
(iii) in years in which the normal contribution rate of the New York
state teachers' retirement system, as defined by paragraph a of
subdivision two of section five hundred seventeen of this chapter,
increases by more than two percentage points from the previous year, a
tax levy necessary for expenditures for the coming fiscal year for
school district employer contributions to the New York state teachers'
retirement system caused by growth in the normal contribution rate minus
two percentage points; and
(iv) a capital tax levy.
2-a. Tax base growth factor. a. No later than February fifteenth of
each year, the commissioner of taxation and finance shall identify those
school districts for which tax base growth factors must be determined
for the coming school year, and shall notify the commissioner of the tax
base growth factors so determined, if any.
b. The commissioner of taxation and finance shall calculate a quantity
change factor for the coming school year for each school district based
upon the physical or quantity change, as defined by section twelve
hundred twenty of the real property tax law, reported to the
commissioner of taxation and finance by the assessor or assessors
pursuant to section five hundred seventy-five of the real property tax
law. The quantity change factor shall show the percentage by which the
full value of the taxable real property in the school district has
changed due to physical or quantity change between the second final
assessment roll or rolls preceding the final assessment roll or rolls
upon which taxes are to be levied, and the final assessment roll or
rolls immediately preceding the final assessment roll or rolls upon
which taxes are to be levied. The commissioner of taxation and finance
shall, as appropriate, promulgate rules and regulations regarding the
calculation of the quantity change factor which may adjust the
calculation based on the development on tax exempt land.
c. After determining the quantity change factor for a school district,
the commissioner of taxation and finance shall proceed as follows:
(i) If the quantity change factor is negative, the commissioner of
taxation and finance shall not determine a tax base growth factor for
the school district.
(ii) If the quantity change factor is positive, the commissioner of
taxation and finance shall determine a tax base growth factor for the
school district which is equal to one plus the quantity change factor.
3. Computation of tax levy limits. a. Each school district shall
calculate the tax levy limit for each school year which shall be
determined as follows:
(1) Ascertain the total amount of taxes levied for the prior school
year.
(2) Multiply the result by the tax base growth factor, if any.
(3) Add any payments in lieu of taxes that were receivable in the
prior school year.
(4) Subtract the tax levy necessary to support the expenditures
pursuant to subparagraphs (i) and (iv) of paragraph i of subdivision two
of this section for the prior school year, if any.
(5) Multiply the result by the allowable levy growth factor.
(6) Subtract any payments in lieu of taxes receivable in the coming
fiscal year.
(7) Add the available carryover, if any.
b. On or before March first of each year, any school district subject
to the provisions of this section shall submit to the state comptroller,
the commissioner, and the commissioner of taxation and finance, in a
form and manner prescribed by the state comptroller, any information
necessary for the calculation of the tax levy limit; and the school
district's determination of the tax levy limit pursuant to this section
shall be subject to review by the commissioner and the commissioner of
taxation and finance.
4. Reorganized school districts. When two or more school districts
reorganize, the commissioner shall determine the tax levy limit for the
reorganized school district for the first school year following the
reorganization based on the respective tax levy limits of the school
districts that formed the reorganized district from the last school year
in which they were separate districts, provided that in the event of
formation of a new central high school district, the tax levy limits for
the new central high school district and its component school districts
shall be determined in accordance with a methodology prescribed by the
commissioner.
5. Erroneous levies. In the event a school district's actual tax levy
for a given school year exceeds the maximum allowable levy as
established pursuant to this section due to clerical or technical
errors, the school district shall place the excess amount of the levy in
reserve in accordance with such requirements as the state comptroller
may prescribe, and shall use such funds and any interest earned thereon
to offset the tax levy for the ensuing school year.
6. (a) Notwithstanding any other provision of law to the contrary, in
the event the trustee, trustees or board of education of a school
district that is subject to the provisions of this section proposes a
budget that will require a tax levy that exceeds the tax levy limit for
the corresponding school year, not including any levy necessary to
support the expenditures pursuant to subparagraphs (i) through (iv) of
paragraph i of subdivision two of this section, then such budget shall
be approved if sixty percent of the votes cast thereon are in the
affirmative.
(b) Where the trustee, trustees or board of education proposes a
budget subject to the requirements of paragraph (a) of this subdivision,
the ballot for such budget shall include the following statement in
substantially the same form: "Adoption of this budget requires a tax
levy increase of which exceeds the statutory tax levy increase
limit of for this school fiscal year and therefore exceeds the
state tax cap and must be approved by sixty percent of the qualified
voters present and voting."
7. In the event that the original proposed budget is not approved by
the voters, the sole trustee, trustees or board of education may adopt a
final budget pursuant to subdivision eight of this section or resubmit
to the voters the original or a revised budget at a special district
meeting in accordance with subdivision three of section two thousand
seven of this part. Upon one defeat of such resubmitted budget, the sole
trustee, trustees or board of education shall adopt a final budget
pursuant to subdivision eight of this section.
8. Notwithstanding any other provision of law to the contrary, if the
qualified voters fail to approve the proposed school district budget
upon resubmission or upon a determination not to resubmit for a second
vote pursuant to subdivision seven of this section, the sole trustee,

trustees or board of education shall levy a tax no greater than the tax
that was levied for the prior school year.
9. Nothing in this section shall preclude the trustee, trustees, or
board of education of a school district, in their discretion, from
submitting additional items of expenditures to the voters for approval
as separate propositions or the voters from submitting propositions
pursuant to sections two thousand eight and two thousand thirty-five of
this part; provided however, except in the case of a proposition
submitted for any expenditure contained within subparagraphs (i) through
(iv) of paragraph i of subdivision two of this section, if any
proposition, or propositions collectively that are subject to a vote on
the same date, would require an expenditure of money that would require
a tax levy and would result in the tax levy limit being exceeded for the
corresponding school year then such proposition shall be approved if
sixty percent of the votes cast thereon are in the affirmative.