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PROPOSITION 2½
PROPOSITION 2½ limits the amount the town can raise in local
property taxes. The amount that can be raised in any year is equal
to:
|
A |
The amount raised in the
previous year, less any overrides or debt exemptions plus |
|
B |
Any excess capacity
not used in the previous year plus |
|
C |
2.5% of A + B
plus |
|
D |
New growth plus |
|
E |
Any overrides or debt
exemptions |
This
limit applies to the total tax levy of the town. It does not apply
to individual properties within the town.
The
tax due on a specific piece of property is determined by the ratio
of the assessed value of that property to the total assessed value
of the entire town. That ratio will change as new growth adds to the
total assessed value of the town and as improvements add to the
value of an individual property.
The
ratio will also change in a revaluation year as the relative values
of various classes and sub-classes of properties change.
The
total amount that may be raised does not depend on the total
assessed value of the town. So, for example, if a revaluation of the
entire town increases the total assessment of the town by 25%, that
increase will have no effect on the total allowable tax for the
town.
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