New York, July 11– The National Basketball Association today announced that the Salary Cap for the 2006-07 season will be $53.135 million. The new Cap goes into effect at 12:01 a.m. ET on Wednesday, July 12, when the league’s “moratorium period” ends and teams can begin signing free agents and making trades.

For the 2005-06 season, the tax level was set at $61.70 million. The tax level for the 2006-07 season has been set at $65.42 million. Any team whose team salary exceeds that figure will pay a $1 tax for each $1 by which it exceeds $65.42 million.

The mid-level exception is $5.215 million for the 2006-07 season and the minimum team salary, which is set at 75% of the Salary Cap, is $39.85 million.