Relates to the formula for the real property tax cap

This bill (S 1635) updates the calculation method for real property tax levy limits used by local governments and school districts in New York. It requires these entities to determine their annual tax cap by: (1) using the highest tax levy from the prior five years, (2) adjusting for tax base growth and payments in lieu of taxes, (3) subtracting specific prior-year expenditures, and (4) applying an allowable growth factor. The changes directly affect all cities, towns, villages, and school districts that set annual property tax rates. The bill modifies existing statutory formulas without altering tax rates or policy outcomes - only changing the procedural calculation method.