NY S67005

Establishes a 4.04% annual cap on school district tax levy increases (or 120% of inflation rate, whichever is less, with minimum floor of 1%) for most New York school districts, effective 2011-2012 school year.

Requires school districts to hold annual budget votes on tax levy propositions, which pass if over 50% of voters approve (55-60% required if proposed levy exceeds statutory limit and state aid increases are below 5%).

Allows qualified voters to propose more restrictive "underride" propositions to reduce tax levy limits with 10% petition signature requirement, voted on first Tuesday in May.

Applies identical 4.04% tax levy cap to local governments (counties, cities, towns, villages, fire districts) starting with fiscal years beginning in 2011, with override requiring two-thirds vote by governing body.

Eliminates previous budget contingency provisions and revote procedures; limits school district budget submissions to voters to a maximum of two votes per school year.