Proposition 2 1/2 was approved by Massachusetts voters in 1980 by a 56 percent to 40 percent margin to set limits on property and excise taxes assessed by local officials. Although some communities have authorized overrides of Proposition 2 1/2, most have not, and the law remains popular with Massachusetts residents.
A recent report by the Massachusetts Fiscal Alliance cites a Tax Foundation study that confirms that Proposition 2 1/2 “continues to serve as one of the Commonwealth’s most important taxpayer protections, especially at a time when state leaders are allowing local aid to erode despite record-breaking revenues.”
Not everyone is pleased with Proposition 2 1/2.
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Boston-based Public Broadcasting Station WGBH reported that Boston Mayor Michelle Wu is hoping to “temporarily tax commercial properties past the legal limit” set by Proposition 2 1/2 to “ease the pain of residential property tax spikes.”
Wu is proposing a 13 percent property tax hike for residential property owners in 2026. Wu’s tax rate must receive approval from the Massachusetts Department of Revenue and the Legislature…