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Chang, Hector and Christine Wen. (2014). "Tax Caps in Other States: Lessons for New York." The Creative Responses to Fiscal Stress Project, Dept. of City and Regional Planning, Cornell University.

Local governments in New York are facing increased fiscal stress due to the recently implemented property tax cap. As they struggle to remain solvent in the short term, our research looks towards six other states with more historic tax caps to understand their long-term effects.

In the absence of additional state aid or mandate relief, we find that local governments with property tax caps make more drastic service cuts and increase revenues through overrides and user fees. These sources of revenue are dependent on a community’s ability to pay and can amplify existing regional inequalities. This policy brief makes recommendations for state policy changes that can reduce the negative consequences of the tax cap on communities across New York.

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