Proposition 2 ½ is the state law that limits the growth in the tax levy – the aggregate amount collected in property taxes – by 2.5 percent a year for all communities in the state. The Assessor’s office maintains a record of the valuation of all real estate in the town of Arlington. Annually the Assessor uses that valuation to determine the tax rate. This process starts with the calculation of a new levy limit. The new levy limit is determined by adding together the current levy limit, the allowable 2.5% increase and any new growth. This is then divided by the total assessed value of all property in town to determine the tax rate. The Assessor produces a recap document that shows these calculations and the information they are based on annually. The Select Board then votes to set the new tax rate and the documents are filed with the state to prove that the tax rate complies with the provisions of Proposition 2 1/2. Proposition 2 1/2 also outlines the process for overriding the levy limit and increasing it by more than 2.5%. An override requires approval by the majority of the voters in a community to be approved. In the Town of Arlington the Select Board must vote to put an override question on the ballot. You can find an in-depth explanation of Proposition 2 1/2 here.