FALLSBURG — Budget season has begun in Fallsburg, and the town board is taking the first step toward giving itself the option to exceed New York’s property tax cap for 2027.

The board voted Wednesday, Sept. 16, to introduce Proposed Local Law No. 7 of 2026, which would allow the town to override the state tax levy limit for the coming fiscal year. A public hearing is scheduled for Oct. 7 at 6 p.m.

The board approved the motion without discussion.

For 2027, the allowable property tax levy growth for local governments with calendar-year budgets will remain capped at two percent, according to New York State Comptroller Thomas DiNapoli.

The state calculated the inflation factor at 3.13 percent, but the law generally limits levy growth to the lower of inflation or two percent, with certain exceptions according to the NYS Office of the Comptroller.

The tax levy is the total amount a local government raises through property taxes. It is different from an individual homeowner’s tax bill, which can increase by more or less depending on assessments and other factors.

Passing an override does not necessarily mean Fallsburg will exceed the cap. DiNapoli recently reported that more local governments have been considering overrides as they deal with rising costs and slower revenue growth, but a planned override does not automatically mean the final budget will go above the limit.

Under state law, a town board needs at least 60 percent approval to adopt an override.