POTSDAM — Town Board members have scheduled a Sept. 24 public hearing to discuss a proposed resolution to override the tax cap for the 2020 budget year.
The hearing, to be held starting at 6 p.m. at the Town Hall, 18 Elm St., will allow the public to comment on Proposed Local Law 2019-3, a local law that would allow the town to set aside the tax levy limit.
The proposed local law would authorize the town board to override the tax levy limit on the amount of real property taxes that may be levied under the general municipal law and would allow the town to adopt a 2020 budget that includes a real property tax levy in excess of the “tax levy limit” as defined in General Municipal Law §3-c.
The override is only used as a protective measure, Town Clerk Cindy J. Goliber said.
“If you don’t override the tax cap and you go over the cap, then you can be penalized by New York state,” Mrs. Goliber said. “If you override the tax cap and the budget is below the cap, then you can rescind the tax cap override. It’s a protection for towns and villages and cities because they have this tax cap, but it’s not a true two percent and there is a very convoluted formula because your PILOTs (Payment in Lieu of Taxes) affect it, a lot of different things affect it.”
Mrs. Goliber, who is also a village trustee, said the village has done it in the past as well. The town also passed a similar resolution during the 2019 budget year.
Sometimes you don’t know until you get the budget all set,” she said. “And we’re not alone. I would dare say, the village did it. You do it to protect yourself. They’ve done it since they set this in motion.”
If passed by the board, the local law would take effect immediately upon filing with the Secretary of State.