2017 Tax Cap Inflation Factor for Counties Likely to be Lowest Yet
Late last week, the CPI data for the month of May was released, which means we now have data for 11 of the 12 months necessary to calculate the 2017 tax cap inflation factor. Over the last few months energy prices have slowly increased, the labor market is starting to see wage growth pressure and housing costs are increasing – all of these are contributing to a higher inflation trend. With the data through May, and assuming the inflation rate for June stays within a 0% – 3% annualized range, NYSAC projects that the likely 2017 county property tax cap inflation factor should be in the .60 to .67 percent range. If the June data is similar to the past few months the inflation factor for 2017 should fall at the higher end of this range. The estimate for 2017 is slightly lower than the .73 percent inflation factor for last year.
The inflation factor for the property tax cap for the last several years is below: