BOSTON â A long-standing Massachusetts law that gives voters direct approval over major property tax increases could be eliminated under a repeal effort supported by Mayor Michelle Wu â a move that would affect not only Boston, but every city and town in the Commonwealth.
The law, known as Proposition 2½, limits how much total property tax revenue municipalities can raise each year and requires voter approval when local officials want to exceed that cap. It has applied statewide since voters adopted it in 1980 and is credited with giving residents a direct check on local tax increases.
If repealed, that requirement would disappear â meaning cities and towns could raise property taxes beyond current limits without first asking voters at the ballot box.
A statewide rule, not a Boston-only issue
While the debate has gained attention amid Bostonâs rising tax pressures, Proposition 2½ is not a Boston-specific policy. It governs property taxation for all 351 municipalities in Massachusetts, from large cities to small suburban and rural towns.
Under current law, a city council or town meeting can propose a so-called âoverrideâ or âexclusionâ to raise taxes above the limit, but the proposal does not take effect unless a majority of voters approve it.
That process would no longer be required if the law were repealed.
Why repeal is being discussed
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Supporters of repeal argue that Proposition 2½ restricts local governmentsâ ability to respond to rising costs, growing populations, and long-term budget pressures. Wu and other backers have described the law as outdated and say municipalities need more fiscal flexibility.
Opponents counter that flexibility comes at the expense of voter oversight â particularly at a time when property tax bills are already rising across the state.
Boston, in particular, has seen growing concern over assessments, expanding city payrolls, and increased spending commitments, prompting criticism that City Hall is seeking broader taxing authority rather than cost controls.
What would change for voters
Currently, Massachusetts voters have a statutory right to weigh in directly on certain property tax increases. Repealing Proposition 2½ would remove that requirement, shifting final approval from voters to local governing bodies.
The impact would extend beyond homeowners. Renters could see higher costs passed along through rents, and small businesses could face higher tax bills without a public vote.
Fiscal watchdogs also warn that repeal would reduce transparency, since ballot questions require municipalities to disclose detailed financial plans, timelines, and justifications to the public.
Broader implications
Because Proposition 2½ is state law, changes to it would apply uniformly across Massachusetts â affecting communities that have regularly relied on voter-approved overrides as well as those that have avoided them.
Critics argue that repealing the law would penalize towns that have managed within the limits, applying the same reduced voter oversight statewide regardless of local fiscal discipline.
The repeal effort has reignited a broader debate over the balance between municipal authority and voter control â a debate that extends far beyond Bostonâs city limits.
For now, Proposition 2½ remains in effect, preserving votersâ role in approving major property tax increases. But the push to repeal it has placed that long-standing right squarely at the center of Massachusettsâ tax and governance debate.
