On June 24, 2011 the property tax cap was signed into law and applies to all independent school districts in New York state. The tax cap allows school districts to increase their property tax levy from one year to the next by 2 percent or the rate of inflation, whichever is less. However, school districts are allowed to take certain exemptions that may increase their tax levy limits in excess of 2 percent or the inflation rate. The levy is incorporated into the budget vote and presented annually to voters.