Watertown Council Mulls Impact Of Property Tax CapIt's thought of by many as one of Gov. Andrew Cuomo's biggest accomplishments to date: the passage of a 2 percent cap on property taxes. Monday night Watertown City Council got a look at what the cap could mean for the city's bottom line - and its taxpayers. The cap limits the annual growth of local property taxes to 2 percent or the rate of inflation. But that number isn't hard and fast. The levy could increase by more than that, thanks to the fine print. "The tax cap legislation has certain exclusions within the legislation that allows for certain actions, increases to pension costs to be added above that 2 percent to cover that," said city comptroller James Mills. Mills says it's a common trend for municipalities' skyrocketing pension costs to drive the numbers up. In Watertown, pension costs have gone from about $90,000 in 2002 to $3.1 million in 2011. "Going through the numbers, the levy could be increased 6.2 percent, if council so chooses to, without passing any overriding legislation to go above what the tax cap is allowing them," Mills said. Overriding the tax cap is still an option. The state comptroller's office reports that 177 other municipalities have already opted to do so, Local lawmakers will have until just before the budget is adopted in June to decide whether to override the tax cap. Most Popular |
Monday, May 21, 2012
, Watertown, NY
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