What is proposition 2 1/2?

Proposition 2 1/2 places constraints on the amount of money raised by taxes (the levy) and how much the levy can be increased from year to year. The statute provides annual increases of the levy limits as: (1) prior year levy times 2.5 percent, and (2) an additional amount based on the valuation of certain new construction and other allowable new growth. Under no condition can this allowable new growth be the result of a property revaluation and/or update. In no event may the levy limit exceed the levy ceiling of 2.5 percent of the total full and fair cash value of the town.