Proposition 2 1/2 was a statewide ballot initiative proposed in 1980 which limits both the total amount of tax dollars a municipality could raise and the rate of increase in the future. Proposition 2 1/2 was approved by the voters. It affected both property taxes and auto excise taxes. Specifically regarding property taxes, the law had two main components: a levy ceiling, which limits the total amount that can be raised in any given year; and a levy limit, which limits the rate of increase from one year to the next.

Under the levy ceiling, a community cannot raise (levy) taxes exceeding 2.5 percent of the total full and fair cash value of all taxable property in the community. The levy limit restricts levy increases to 2.5 percent above the previous year’s levy limit, plus increases to account for new growth in the community.

Here is a comprehensive primer on prop 2 1/2 and levy limits from the Department of Local Services (DLS).

Here is an excellent set of links on prop 2 1/2 voting history in Massachusetts and new growth.

Here is an informal scorecard of prop 2 1/2 votes in Massachusetts this "season."

This document from the assessor's office explains how assessments are computed in Lexington.

The article below, by The Boston Globe, shows that Lexington's tax increase over the past 8 years has been 59% higher than the state avergage.