What is Proposition 2 ½?

Proposition 2 ½ places constraints on the amount to be collected by the town and on how much those amounts can be increased from year to year by the town. It provides the town with annual increases in their levy limits of 2.5%. With Proposition 2 ½ in effect, it sets the maximum amount a community may collect from the property tax: budgets must stay within that limit (or within the increased limits of any overrides allowed by voters).