What effect have Municipal Property Tax Levy Limits had on property tax growth?
Although the Municipal Property Tax Levy Limit has been in place for only two years for fiscal-year municipalities and one year for calendar-year municipalities, the total growth of property taxes statewide has slowed. In the three years prior to LD 1, annual property tax growth ranged from 5.1% to 7.0%. In 2005, when the limits applied to only fiscal-tear towns, property taxes increased 1.8%. In 2006, the first year the limits applied to all towns, property taxes increased by 3.9%.
