What are the relationship of property values and the tax rate?

Proposition 2½ sets the maximum amount of property taxes (the levy) that the town can raise.

Once the amount to be raised is determined, a tax rate is calculated by dividing the amount to be raised by the total valuation of the town.

Whether the tax rate for the community will increase or decrease from the prior year will depend upon the levy decided upon by the community: it also depends on whether property values appreciate, depreciate or remain steady in the community.

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?