East Rockaway votes to override tax levy cap

At Monday night’s regular meeting, the East Rockaway village board voted unanimously to adopt a local law that will enable it to override the 2 percent property tax levy cap. The state’s tax-cap law, which took effect January 1, limits the annual growth of property taxes levied by local governments and school districts to 2 percent or the rate of inflation, whichever is smaller.

The cap applies to all counties, cities, towns and villages outside New York City, as well as all fiscally independent school districts. It also applies to the property tax levies of special districts established to finance fire departments, libraries, sewer and water systems and other purposes.

“The state of New York decided to cap property taxes at 2 percent, without defining fully what that cap applied to,” said Village Attorney John Ryan, “leaving local villages … [trying to understand] what mandates they need.” The override, Ryan added, “allows this board to deal with the technical problems that are created by this tax cap … not that they want to raise taxes beyond 2 percent.”

East Rockaway follows other local municipalities — including nearby Lynbrook and Hewlett Bay Park — that have voted to override the cap for the upcoming budget year. Malverne officials are still mulling the possibility. A county, city, town, village or special district can exceed the tax levy limit if at least 60 percent of the members of its governing body vote in favor of a local law overriding the cap. Local laws, in turn, are subject to statutory requirements including advance public notice and public hearings.

“Most people have confused this with their tax rate,” Mayor Francis T. Lenahan said of the 2 percent cap. He explained that the village operates on a yearly budget that is funded by property taxes and other revenues. The property tax levy fills the gap between those revenues and the total budget.

East Rockaway’s current spending plan totals $8.5 million, and non-property-tax revenue is $2.13 million, so the remaining $6.37 million must be made up by property taxes.