Massachusetts Communities Face Possibility of Raising Property Taxes

Massachusetts towns are weighing Proposition 2.5 overrides to raise property taxes and close budget gaps, preventing cuts to essential services.

Arlington, Winchester, and Brookline are among the communities that are requesting, or have asked voters, to raise property taxes or risk cutting city services.

"Cities and towns are facing rising cost pressures, health care costs, utility costs, school-related costs, and very limited options to raise revenues," said Adam Chapdelaine of the Massachusetts Municipal Association in a statement shared with NBC10 Boston.

For some towns, the response to increasing costs is first-responder and teacher layoffs, library closures, and delays in repair work unless voters approve an override of Proposition 2.5. This legislation limits annual property tax increases to 2.5% of the previous year's value plus growth.

Experts say the rising deficits in municipal budgets stem from housing shortages, higher costs in health care and utilities, and inflation that outpace the 2.5% cap plus growth under Proposition 2.5, noted Greg Maynard with the Boston Policy Institute.

"The number 2.5 was set almost 50 years ago. It certainly doesn't match up with the reality of an inflationary environment," said Adam Chapdelaine with the Massachusetts Municipal Association in a statement shared with NBC10 Boston.

While housing challenges and expiring COVID funds are contributing to the budget crisis, experts agree that voters need to make the final decision.