How does Proposition 2½ limit property taxes?

Proposition 2½ contains two limitations on the amount of property taxes the town can raise:

  1. The property tax levy ceiling (the amount raised) can never exceed 2½% of the full cash value of all taxable property in the town. A tax rate cannot be higher than $25 per $1,000 of valuation.
  2. The property tax levy limit cannot be increased more than 2½% over the prior year's levy limit, with certain exceptions for new growth, or through overrides and exclusions as adopted by the voters.

Show All Answers

1. What is Proposition 2½?
2. Does Proposition 2½ mean that my taxes cannot increase more than 2½% per year?
3. How does Proposition 2½ limit property taxes?
4. How does Proposition 2½ affect my individual tax bill?
5. What is the Classification Amendment and how does it work with Proposition 2½?
6. Does Proposition 2½ allow increases in the tax levy?
7. What are the relationship of property values and the tax rate?