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State's Tax Cap to Tighten Due to Rate of Inflation

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Local governments and school districts may have to tighten their belts. The state comptroller says the tax cap will tighten because of a drop in inflation.

The state's tax cap law limits tax cap growth to the lesser of two percent or the rate of inflation. Comptroller Tom DiNapoli says localities now face a significantly less than two percent scenario. His office estimates local governments around the state will have just over $88 million less in tax levy growth in 2016 than in 2015.