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New York Teachers Union Sues State Over Taxation Law

The New York State United Teachers (NYSUT) is suing the state over changes to the taxation law that now places a cap on tax hikes imposed by taxing entities in the state.

The cap on tax hikes by a school district is limited to the rate of inflation or two percent (whichever is lower). A school district, which feels this cap must be overridden, can do so by getting the tax hike approved by a 60 percent supermajority of the popular vote.

The NYSUT lawsuit filed in the State Supreme Court claims that this provision violates the state constitution as well as the equal protection clause of the U.S. constitution. They claim that inequitable funding and the tax cap predominantly hurts less wealthy districts and will harm the future of children in minority and poorer communities.

Examples cited in court documents illustrate how wealth adjusted state funding is not able to level the playing field in terms of actual spending by school districts. One district in Madison County spent only $20,712 per student per year, while another one in Long Island is able to spend $93,271 on each student.  

The State is faulted for not living up to its commitment to spend an additional $7 billion for low wealth school districts as agreed to in the Campaign for Fiscal Equity School funding case. The lawsuit claims that poorer school districts already suffering from this inequitable funding will be hit hard by a minority who do not want the taxes raised.

Other taxing entities, such as municipalities, will not be affected by the lawsuit, which asks for relief only for school districts. Towns and villages can simply override the law with a majority vote of their board.

State officials and business groups defended the tax cap, claiming that the tax cap was an important step in controlling property taxes that are already among the highest in the nation.

Did you know?
The taxation law in most states allows for a homestead exemption.
Homestead exemptions are usually available for fixed amounts, such as the first 50,000 of the property’s assessed value. This means that if the property has been assessed at $100,000, the first $50,000 of value is exempt. Property taxes have to be paid only on the remaining $50,000.