![]() In 2013 they approved an override of $8.4 million which included funds for the new Zervas Elementary School building, and the Fire Headquarters and Fire Station 3 buildings. In 2002 voters approved an override of $11.5 million. Newton voters have approved overrides twice. For example, override funds could be used for things like educating students, paving roads, making park improvements, or building a new school or fire station. These funds can be used for both operating and capital expenses. An override results in a permanent increase in the levy limit of a community. ![]() (There also is a third type of override called a capital outlay exclusion override.)īy passing an Override a community can assess taxes in excess of the automatic annual 2.5% increase and any increase due to new growth or its Levy Limit. Communities can levy above its levy limit permanently or temporarily by passing by majority vote in an election an override or a debt exclusion override. Prop 2 ½ gives communities flexibility to support local spending for schools and municipal operations. Increases in New Growth will also impact your property tax bill.Ī community can exceed its levy limit with voter approval. A common misconception is that Prop 2 ½ restricts the amount your property tax bill can increase to 2.5%. Notably, the 2.5% increase limitation applies only to the Levy Limit, and not to any individual property owner’s tax bill. The 2.5% increase and the new growth number are both added to the prior year’s levy limit to reach the current year’s levy limit. Under Proposition 2 ½, a community’s levy limit increases automatically by two factors:ġ) an incremental increase of 2.5% of the prior year’s levy limit (hence the law’s nickname), andĢ) a dollar amount derived from the value of new construction and other growth in the local tax base since the previous year, called New Growth. The maximum amount a community can levy in any given year is called the Levy Limit. ![]() Prop 2 ½ limits how much the levy can be increased from year-to-year. This revenue is technically called the Tax Levy ̶ or usually simply the Levy. Proposition 2 ½ refers to a Massachusetts law enacted in 1980 that strictly limits the amount of property tax revenue a community can raise through real and personal property taxes. ![]()
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