County Budget #4: What is property tax cap, and what happens on Sep 1?

Published on August 25, 2026

Each September, the County Administrator presents a Recommended Budget to the Tompkins County Legislature. This marks an important milestone in the budget process, but it is not the final decision.

The Recommended Budget outlines the proposed spending plan for the coming year, including expected revenues, planned expenditures, staffing recommendations, capital projects, and the proposed property tax levy. It also includes the Administrator's budget message, which explains the priorities, opportunities, and challenges that shaped the proposal.

Understanding the property tax levy and tax rate

When discussing the County budget, you’ll often hear two terms that sound similar but mean different things: tax levy and tax rate.

Tax levy is the total amount of money the County needs to raise through property taxes to support the budget after accounting for other revenues.

Tax rate is used to determine how that levy is distributed among taxable properties. Generally, the tax rate is calculated by dividing the tax levy by the total taxable assessed value of property and is expressed as an amount per $1,000 of taxable assessed value.

This distinction is important because the levy can increase while the tax rate decreases if the taxable property base grows enough. Conversely, a change in the tax rate does not necessarily mean every property owner’s bill will change by the same percentage.

An individual property owner’s County tax bill depends on the tax rate and the property’s taxable assessed value. Changes in assessments and exemptions can therefore affect what an individual property owner pays.

What is the property tax cap?

Another term residents often hear is New York State’s property tax cap. Despite its name, the property tax cap does not cap an individual property owner’s tax bill, nor does it simply limit every local government’s tax levy increase to 2%.

For 2027, the allowable levy growth factor for calendar-year local governments is 2%. However, the actual tax levy limit for an individual local government is determined by a state formula that includes factors such as growth in the tax base, certain exclusions, payment in lieu of taxes agreements (PILOTs), and available carryover. New York law also provides a process for local governments to override the tax levy limit.

That means a resident’s individual County property tax bill could increase by more than or less than 2%, even when the County complies with the tax cap.

What should residents look for on September 1?

When the County Administrator presents the 2027 Recommended Budget on September 1 at 5:30 pm in the Legislative Chambers during the regular legislature meeting, residents will get their first look at the complete proposed financial plan for next year. The meeting is open to the public and will also be livestreamed on the County’s YouTube channel (watch the meeting and recording).

Among the key numbers to watch will be:

• Total proposed expenditures: How much the County proposes to spend across all funds and services.
• Proposed property tax levy: How much of the budget would be supported by property taxes.
• Change in the tax levy: How the proposed levy compares with 2026.
• Proposed tax rate: The amount per $1,000 of taxable assessed value.
• Impact on a typical property: An illustration of what the proposal could mean for a property at a representative assessed value.
• Major investments and changes: Significant service, staffing, capital, or other recommendations included in the budget.

These figures help tell different parts of the budget story. A change in total expenditures, for example, does not translate directly into the same change in property taxes because the County receives revenue from many other sources. And just as importantly, September 1 is not the end of the process.

Expanded Budget Committee meetings

Following the presentation, the Legislature begins several weeks of public budget review through its Expanded Budget Committee (EBC) meetings. Legislators hear directly from departments and funded community agencies, ask questions about services and funding requests, consider potential changes, and ultimately adopt the final budget later in the fall.

The first EBC meetings are scheduled for September 2 and 3, beginning at 5 pm in the Legislative Chambers. Meetings are open to the public and will also be livestreamed on the County’s YouTube channel. (Watch the EBC meetings and recordings).

Additional EBC meetings will continue throughout the budget review process. Residents can attend in person, watch live, or view the recordings afterward to follow the Legislature’s review of the Recommended Budget.

Did you know?

The County’s property tax levy can increase while its property tax rate decreases. The levy is the total amount collected, while the rate also depends on the amount of taxable property across the County.

Myth vs. Fact

Myth: New York’s property tax cap means my County property tax bill cannot increase by more than 2%.

Fact: The tax cap applies to the growth of the County’s overall property tax levy under a state formula, not to individual property tax bills. Your bill is also affected by your property’s taxable assessed value and applicable exemptions.

Budget basics

Tax levy: The total amount of property tax revenue the County needs to collect to support County services after other revenues are taken into account.

Tax rate: The rate applied to taxable assessed property values to generate the property tax levy. It is generally expressed as an amount per $1,000 of taxable assessed value.

Resident question of the week

Question: Some properties and organizations are partially or fully exempt from property taxes. How do property tax exemptions work, and how do they affect other taxpayers?

Answer: Property tax exemptions are established under New York State Real Property Tax Law. Some exemptions are mandated by State law, meaning local taxing jurisdictions are required to provide them when a property or property owner meets the eligibility requirements. For other exemptions, State law gives local municipalities the option to adopt or opt out of an exemption.

Depending on the exemption, some or all of a property's assessed value may be exempt from taxation. Exemptions may also apply differently to County, municipal, school district, or other property taxes.

This matters because the County's property tax levy is distributed across the taxable property base. Property value that is exempt from County taxation is not included in that taxable base. The amount of taxable property across the County is therefore one of the factors that determines the County tax rate.

However, there isn't a simple one-to-one calculation showing how a particular tax-exempt property affects an individual resident's tax bill. The amount an individual property owner pays depends on several factors, including the total County tax levy, the overall taxable property base, the property's taxable assessed value, applicable exemptions, and changes in taxable value across the County.

Have a question about the County budget?

Send it our way! Throughout this series, we'll answer selected questions from residents in our Resident Question of the Week feature. Submit your question on our 2027 Budget Feedback Portal.

What's next?

Next week, after the County Administrator presents the 2027 Recommended Budget, we’ll break down the key numbers and explain what they mean. We’ll also take a closer look at what happens during the Expanded Budget Committee meetings and how residents can follow and participate in the remainder of the budget review process.

Follow along each week on the Tompkins County website, social media, or sign up for our newsletter (News from the Legislature) as we explore how the County budget supports the services, infrastructure, and programs that help make Tompkins County a healthy, safe, and thriving community.