Show All Answers

1. How does Proposition 2 1/2 limit property tax?

Proposition 2 1/2 contains 2 limitations on the amount of property taxes a city or town can raise.

First, the property tax levy ceiling (the amount raised) can never exceed 2.5% of the full cash value of all taxable property in the city or town.

Second, the property tax levy cannot increase from year to year by more than 2.5%, with certain exceptions for new growth, or through over rides and exclusions as adopted by the voters.

2. How does Proposition 2 1/2 affect my individual bill?

The levy limit provisions of Proposition 2 1/2 affects the total amount of taxes to be raised by a city or town. It does not apply to an individual tax bill.

3. What is classification? How does it work with Proposition 2 1/2?

The voters adopted the Classification Amendment to the Massachusetts Constitution in 1978. It allowed cities and towns to categorize real estate into 4 classes - residential, commercial, industrial and open space - and to tax these classes at different rates.

Proposition 2 1/2 affects the total amount of tax that can be raised. Classification affects which classes of taxpayers will pay what specific share of the total amount of tax.

4. Does Proposition 2 1/2 allow increases in the tax levy?

Proposition 2 1/2 contains several provisions for an increase in the tax levy limit. Review the provisions.