PROPERTY TAX

Property Tax is the primary source of revenue for most Massachusetts municipalities. In Brookline, Property Taxes represent more than 79% of General Fund revenues. Property Taxes are levied on both real property (land and buildings) and personal property (equipment). Recently amended state law mandates that communities update their property values every year and obtain state certification that such values represent full and fair cash value every fifth year. A comprehensive town-wide revaluation was completed in FY2019, with the next one now scheduled for FY2024, the assessors continue to update assessments annually based on changes in market conditions, changes in use and new construction.


Under the provisions of Proposition 2 ½, property taxes, in the aggregate, may not exceed 2 ½% of their "full and fair cash value". This limit is known as the "Levy Ceiling". In addition, annual levy increases may not exceed 2 ½% more than the previous year's levy plus the "New Growth" in taxes added from any new properties, renovations to existing properties, or condominium conversions added to the tax rolls. This is known as the "Levy Limit". Any Proposition 2 ½ override or debt exclusion amounts voted by the electorate are added to the Levy Limit while all related school construction reimbursements from the State are similarly subtracted.


Property values and New Growth for FY2021 are preliminary estimates used to project the Levy Limit. The FY2021 Maximum Allowable Levy is projected to total $251,527,496 representing an increase of $13,039,753 (5.5%) over the FY2020 Levy. The figures below detail how the estimated FY2021 levy is calculated:


COMPOSITION OF ANNUAL GROWTH IN THE PROPERTY TAX LEVY

***Please note that 2020-21 data is estimated.