Local government property taxes in New York next year will hit their statutory cap of a 2% increase, state Comptroller Tom DiNapoli on Wednesday announced. 

It's the third time in the cap's decade-long history that local governments will have property levies limited to a 2% increase. The 2011 law limits property tax increases at 2% or the rate of inflation, whichever is lower. Local governments can also override the cap if they choose. 

DiNapoli's announcement affects all counties, towns and fire districts in the state, as well as 44 cities and 13 villages that operate their budgets on a calendar-based fiscal year. The 2021 limit was set at a 1.56% increase.

"Allowable tax levy growth will be limited to 2% for a third time in four years for local governments with calendar fiscal years," DiNapoli said. "As the economy recovers from the pandemic, local governments have seen some revenues rebound and have benefited from one-time federal financial assistance. At the same time, the risk of inflationary cost increases and the need for investments that will stimulate economic growth and fund essential services may lead to challenging budget decisions ahead.”