By Carol P. Bartold     

Jun. 10, 2015:  Responding to indications from Albany that the statewide two percent property tax cap is likely to become permanent, the Bronxville Board of Trustees, at its June 8 meeting, adopted a nonbinding resolution to exempt health insurance premium increases in excess of the cap from the tax cap calculation.

Passed by the New York State Legislature in 2011, the cap, set to expire in 2016, limits annual property tax increases levied by municipalities and school districts to the lesser of two percent and the rate of inflation. Village Administrator Jim Palmer pointed out that during the 2014-2015 fiscal year, communities faced a tax cap of 1.58 percent.

"Obviously, as you understand, to fund infrastructure and capital improvements, those items go well beyond 1.58 percent," Palmer said.

He added that the tax cap imposes a significant obstacle for communities to perform planned infrastructure maintenance and capital improvement projects. While complying with the cap discourages communities from improving infrastructure, those communities also can find themselves under a consent decree from the state to fund mandated repairs, and exceed the cap, or face thousands of dollars in fines.

Mayor Mary Marvin noted that the New York State comptroller indicated that approximately two thirds of infrastructure repairs statewide are not being done because of the tax cap. "This resolution," she said, "is an effort to say if we're stuck with this, at least modify it to become a little more rational."

She also stated that, while she supported the resolution, she believes that "we're stuck with the tax cap."

"There are costs associated with the cap," Palmer said, "and infrastructure is one of them."

Pictured here:  Deputy Mayor Robert Underhill (L) and trustee Guy Longobardo.

Photo by Carol P. Bartold