What is Prop 2.5?

In 1980, Massachusetts voters passed prop 2.5, which is a law to place limits on how much MA towns can tax. This law has two major provisions related to the votes we will be taking:

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• The law created a levy limit. This is an amount of dollars which was initially set in 1980. Every year since then, that limit was increased by 2.5%, plus a portion of the value of new construction. With the exception of paying for debt excluded items (more on that later), the town’s real estate taxes must stay under this limit. However, if the citizens find this limit provides insufficient funds, they can raise the limit by passing an override. This year, Wendell voters will be considering two overrides. Click "Why Override" in the menu bar at the top of the page for more info on this.

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• The law also created a levy ceiling, which limits the tax rate. This ceiling is a tax rate of $25. With the exception of paying for debt excluded items, the town’s tax rate must stay under this limit.

 

• A town may choose to exclude certain debt payments from counting towards the levy limit and the levy ceiling. This year, our voters will be considering two debt exclusions: one for a fire department tanker/pumper truck, and one for some existing debt related to past Swift River construction projects. Click "Why Debt Exclusion" in the menu bar at the top of the page for more info.