Home Forums Legislation Tangible Tax Rate Cap Reply To: Tangible Tax Rate Cap

Chris Celeste
Keymaster
Post count: 39

From what I read, I agree with Dan that it’s not only for a single year as opined by Jordan from the League, once you have an exemption, the tangible rate is capped forever.

As far as what rate becomes the “cap”, the language in the budget article (which is now law) states:
28 …shall be capped
29 at the tax rate in effect for the assessment date immediately preceding the assessment date on which
30 the exemption takes effect or the assessment date immediately following the effective date of this
31 section, whichever is later.

So you are correct, @Chelsea, Since EG had an exemption prior to this taking effect, your tangible rate would now be capped at the upcoming 12-31-22, (the assessment date immediately following the effective date of the section.) Then that cap would remain in place as long as you are giving the exemption.

Obligatory “check with your solicitor”, but I would say you get one more chance to raise it for next year, then you are stuck with the cap.