Proposition 2 1/2 and Tax Rate Process

This page provides helpful information on the mechanics of Levy Limits and Proposition 2 1/2.  Proposition 2 1/2 revolutionized property tax administration and is a fundamental feature of the Massachusetts municipal fiscal landscape, yet there is still some confusion about its meaning for cities and towns. The purpose of this information is to explain, as simply as possible, the basic provisions of Proposition 2 1/2. The information contained here is not intended as a substitute for legal guidance on a community's options and obligations under the law. We hope you find it helpful.

Online Tutorials:   

1) What is Proposition 2 1/2?

2) What is the Levy Limit and how is it calculated?

3) What is New Growth and how is it calculated?

4) What is the Levy Ceiling and how is it calculated?

5) How can a community levy above its Levy Limit/Ceiling?

6) What is a Levy Limit Override or Underride?

7) What is an Exclusion?

8) Differences between an Override and an Exclusion.

9) What is Excess Levy Capacity?

More Information:

Levy Limit Sheet Instructions pdf format of Levy Limit Instructions

Levy Limits: A Primer on Proposition 2½

Proposition 2½ Ballot Questions - Requirement and Procedures

Property tax related data is available from the Municipal Databank, levy limit sheet and tax rate recapitulation sheets are available from the DLS Gateway application.