What is the difference between voting to “exceed” or “increase” the Limit?
A vote to “exceed” the limit allows a municipality to raise more property taxes than its limit allows for one year only. A municipality generally exceeds the limit to pay for an unexpected circumstance beyond its control, such as a natural disaster, federal mandate, citizen initiative, or loss of state or federal funding. The amount by which a municipality exceeds its limit will not increase the next year’s limit.
