What is Proposition 2 1/2. What does it mean for Nahant?
• Proposition 2 1/2 is a State law that places a ceiling on the total amount of taxes that a Town can raise; and it also limits the percentage by which a town’s tax revenues can increase from year to year. Proposition 2 1/2 has no relevance as far as tax increases on individual properties are concerned; it relates only to the total amount of taxes raised by the Town. Your Town’s taxes can rise by more than 2 1/2% through: • Exclusions of the cost of debt or spending for capital purposes must first be approved by a two-thirds vote of the local legislative body before appearing on the ballot. The idea is that such costs are outside the regular budget for providing local services; a town may need a new school or wish to acquire land that it could not afford within its tax limits. Exclusions are limited to the life of the expenditure. • Overrides are permanent increases in the tax limit. An override, for a specific amount, must be approved by the municipality’s legislative body and placed
