Proposition 2½ property tax limits

E944771

Proposition 2½ property tax limits are Massachusetts laws that cap how much cities and towns can raise property taxes each year and in total, significantly constraining local revenue growth.

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Statements (47)

Predicate Object
instanceOf Massachusetts state law
property tax cap
tax limitation policy
adoptedBy Massachusetts voters
adoptionMethod statewide ballot initiative
affects local government services funding
municipal bond ratings
public school funding
allowsExceptionVia capital outlay expenditure exclusion
debt exclusion
override
alsoKnownAs Prop 2½ NERFINISHED
Proposition 2 1/2 NERFINISHED
appliesInJurisdiction Commonwealth of Massachusetts NERFINISHED
appliesTo Massachusetts cities
Massachusetts towns
codifiedIn Massachusetts General Laws Chapter 59 Section 21C NERFINISHED
constrains local revenue growth
municipal budget growth
createsIncentiveFor economic development to increase new growth
greater reliance on state aid
use of overrides to fund services
enforcedBy Massachusetts Department of Revenue Division of Local Services NERFINISHED
hasComponent annual levy increase limit
levy ceiling
hasPolicyGoal constrain size of local government
limit growth of property taxes
provide tax relief to property owners
impacts commercial property taxpayers
residential property taxpayers
implementedBy Massachusetts Department of Revenue NERFINISHED
influences local tax policy decisions
municipal budget override campaigns
municipal service levels
isSubjectOf Massachusetts municipal finance debates
education funding policy discussions
limitsAnnualLevyIncreaseTo 2.5 percent of prior year levy
new growth from property development
regulates annual property tax levy increases
maximum property tax levy limit
municipal property tax levy
requiresForOverride local referendum approval
majority vote of local electorate
setsLevyCeilingAt 2.5 percent of full and fair cash value of taxable property
timePerspective long-term structural constraint on local revenues
typeOfCap absolute levy ceiling
rate-of-growth cap

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Massachusetts municipalities subjectTo Proposition 2½ property tax limits