Barbara Anderson and Citizens for Limited Taxation will be dancing in the streets. Debra Howell will be playing her guitar. Declining property values may lead to a decline in tax revenue for the Commonwealth’s cities and towns. The housing market may even out between now and the next time assessments come around, but a huge drop in property values could very well mean a loss of revenue for cities and towns.
1. A community cannot levy more than 2.5 percent of the total full cash value of all taxable property in the community (called the levy ceiling).
2. A community’s allowable levy for a fiscal year (called the levy limit) cannot increase by more than 2.5 percent of the maximum allowable limit for the prior year, plus certain allowable increases such as new growth from property added to the tax rolls. value. If all the property in Granby had a value of $1 million (an imaginary number, but it keeps things simple), the maximum amount Granby could collect in property taxes would be $25,000. If property values dropped, the maximum amount of collectable tax dollars would also drop.