New York State's recently approved property tax cap will likely put greater pressure on local finances and ratings, particularly of school districts, Moody's Investors Service said in a report Tuesday.

Effective Jan. 1, local governments and school districts will be limited to annual tax increases of no more than 2% or the inflation rate, whichever is less.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.