NY S05412

Caps annual property tax levy increases in cities with populations of one million or more (New York City) to the lesser of 2% or the rate of inflation, beginning with fiscal year 2026

Requires the State Comptroller to calculate and notify each affected local government of its tax levy limitation 120 days before the start of each fiscal year

Allows the tax levy cap to be overridden only by a two-thirds vote of the city council through a local law for that specific fiscal year

Permits adjustments to the cap for approved capital expenditures, large tort settlements exceeding 10% of prior year property taxes, and changes in costs for public assistance programs (TANF, safety net assistance)

Requires any excess levy collected due to clerical or technical errors to be placed in reserve and used to offset the following year's tax levy