Information AboutProposition 2.5 |
| CATEGORIES ABOUT PROPOSITION 2½ | |
| 1980 in the united states | |
| 1980 referendums | |
| massachusetts statutes | |
| massachusetts ballot measures | |
| taxation in the united states | |
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There are fundamentally two components of Proposition 2½: # The total annual property tax revenue raised by a municipality can never exceed 2.5% of the total cash value of all taxable property contained in it. (a ceiling) # The annual increase of property tax cannot exceed 2.5%. There are exceptions for new growth, and "overrides" approved by voters, however. Note that these limits refer to the entire amount of the annual tax levy raised by a municipality. Although in practice it does limit the tax bills of individual taxpayers, this is an indirect result. Under Proposition 2½, real estate taxes can rise only under the following circumstances: # Automatic - An annual increase of up to 2.5% is "automatic" up to the total 2.5% ceiling. # New construction - New construction and newly-taxable parcels are not subject to either limit. # Override - A simple majority of voters can approve a temporary or permanent override to increase the annual tax increase beyond 2.5%, though this cannot breach the "ceiling". # Exclusion - Bond s and other municipal debt can be excluded from the increase calculation if a majority of voters pass an exclusion measure. REFERENCES |
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