What is the relationship of property values and the tax rate?
Proposition 2 1/2 sets the maximum amount of property taxes (or the levy) that a town can raise. Once the amount to be raised is determined, a tax rate is calculated by dividing the amount to be raised (tax levy) by the total valuation of the town. Whether the tax rate for a community will increase or decrease from the prior year will depend on the change in the tax levy voted by the community and the change in property values.
