Doesn t Proposition 2 1/2 mean that my taxes cannot increase more then 2 1/2 % per year?
No. Proposition 2 1/2 set a limit on the entire tax levy for a jurisdiction. While there is a limit to the overall increase in property taxes, the revaluation program may result in increases or decreases in property taxes. Proposition 2 1/2 establishes a limit on the revenue a municipality can raise from property taxes. Proposition 2 1/2 does not limit the amount by which an individual tax bill may change form year to year. The revenue that is collected from the property tax is called the property tax levy. The levy is limited as follows: Limit 1 Levy Ceiling The property tax levy cannot exceed 2 1/2 % of the total assessed value of the municipality. For example, if a municipality is valued at $100 million, it could only raise $2.5 million from property taxes. Limit 2 Levy increase limit If the actual levy is less than the levy limit, the levy may only increase by 2 1/2 % above the prior year s levy after making an adjustment for new growth.
Related Questions
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- My propertys market value has gone up considerably from what it was. Does this mean my taxes will also increase?
- Doesn t Proposition 2 1/2 mean that my taxes cannot increase more then 2 1/2 % per year?
