New York has enacted the first-ever cap on local property taxes in the state. Gov. Andrew Cuomo signed the measure after the House and Senate approved it late Friday.

Property tax increases will be capped at 2% or the inflation rate, whichever is less.

The median U.S. property tax paid is $1,917. In New York, it’s $3,755, or 96% higher than the national average, according to Cuomo, who added that as a percentage of personal income, New York has the highest local taxes in the nation — 79% above the national average.

From 1998 to 2008, property tax levies in New York rose by more than 73%, more than twice the rate of inflation during that span, Cuomo said.

According to the governor, companies pay five times more in property taxes than they do in corporate taxes. New York, particularly upstate, continues to hemorrhage population and jobs at a greater rate than the national average.

This cap on property taxes includes safeguards to ensure delivery of critical services for New Yorkers.

There will be limited exceptions to the cap, including judgments or court orders arising out of tort actions that exceed 5% of the localities’ levy and certain growth in pension costs where the system’s average rate increases by more than two percentage points from the previous year.

The amount of contributions above the two percentage points will be excluded from the limit.

All three major rating agencies rate the state double-A.

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