What is Proposition 2 ½?

Proposition 2 ½ places constraints on the amount of the levy raised by the Town and on how much the levy can be increased from year to year by the town. It provides the Town with annual increases in their levy limits of: 1) 2 1/2percent and 2) An additional amount based on the valuation of certain new construction and other allowable growth in the tax base that is not the result of property valuation (“new growth”). In no event may the levy limit exceed the levy ceiling of 2 ½%, an average 2 ½ percent tax increase can be expected each year.