Press Release: 5/7/2026

Prop 2½ is under attack. Help us protect it

 

My name is Christine Reynolds, I’m a taxpayer from Concord, and a proud supporter of the Fiscal Alliance Foundation.  After retiring from a successful career in finance, I’ve been searching for a high-impact, interest aligned organization, and the Fiscal Alliance Foundation is one I am proud to support financially.

Like the spirit of independence and resolve that has defined Concord since the earliest days of our nation, I believe in the Foundation’s commitment to fiscal responsibility and individual liberty. As a result, it is my pleasure to serve as the primary sponsor of its newest matching gift campaign. For the month of May, I will match every contribution up to $25,000.

More on that in a moment.

Now more than ever, the Fiscal Alliance Foundation needs your support. This year, they have been working tirelessly to call attention to a law Massachusetts taxpayers often take for granted. Proposition 2½ was passed forty-six years ago, after a long grassroots campaign waged in response to out of control property taxes in Massachusetts. The law limits property tax levies to 2.5% of a property’s fair cash value and caps annual increases at 2.5%. Despite bringing decades of meaningful relief to taxpayers, Prop 2½ has faced consistent assault from opponents calling for overrides, reassessments, or outright repeal.

That’s why the Fiscal Alliance Foundation has just commissioned and released an independent study: “Proposition 2½: Keeping Property Taxes Low Since 1980.” It reveals exactly how much the law has saved Massachusetts taxpayers and what they stand to lose if it is weakened or repealed. The study was authored by well-respected tax expert Jared Walczak, Senior Fellow at the Tax Foundation and president of Walczak Policy Consulting. Jared has been quoted in the Wall Street Journal and other national and local media outlets, and his reputation on tax policy is among the best in the nation.   

The study’s findings are clear: since its passage, Prop 2½ has saved taxpayers billions. Effective tax rates fell from 3.72% under the old system to just 1.04% today. The median Massachusetts property tax bill of $6,896 would be $24,613 if taxed at pre-Prop 2½ rates. In a state burdened by high energy, transportation, and food costs, that difference provides critical relief for families struggling to make ends meet. The study also found that homeowners currently pay 22% less in property taxes than they would have if the law had been repealed two decades ago.

Repeal is precisely what Prop 2½’s opponents are pushing for. A rising tide of opposition is already emerging from Beacon Hill lawmakers, the Massachusetts Municipal Association, and even Boston Mayor Michelle Wu. Critics label the law as outdated and overly restrictive, arguing that it prevents property taxes from keeping pace with inflation. But the new data emerging from the study points to an undeniable conclusion: Prop 2½ is far less restrictive than its critics claim; its accounting for new property already includes a backdoor inflation adjustment. Pointing the finger at Prop 2½ deflects blame from the real culprit behind local budget shortfalls: out of control state spending, lack of local aid, and mandates passed down by the state to our cities and towns.

Municipalities should not have to raise property taxes to support costly spending programs like green energy climate mandates. Even with Prop 2½, Massachusetts’ property tax burdens are still some of the highest in the nation. This is in large part because when Prop 2½ was passed, our property taxes were already among the highest in the nation. If Prop 2½’s limits were removed, homeowners would pay nearly 50% more in 2026 than they did just a decade earlier.

Prop 2½ is not outdated. It is a vital protection for taxpayers already struggling with Massachusetts’ steep cost of living, worsened by expensive and ineffective policies. Your property taxes should not be another source of funding for Beacon Hill’s ideological agenda, but without this limit, lawmakers will look to your property taxes to finance their Net Zero climate mandates just like they did with your utility bills.

Before you act, I encourage you to watch this short interview between Paul Craney and I, where we discuss the importance of this new study and what taxpayers can do to help protect Prop 2½: youtu.be/Vaw1CY54dKk. 

You can read these findings and much more for yourself in the full report, available here.

The Fiscal Alliance Foundation is committed to defending the virtues of Prop 2½ by presenting the real numbers to the public and those who make decisions for our state and municipalities. High-quality, independent research of this kind does not come cheap, and publication is just the first step. This study will cost close to $50,000 to complete and promote effectively, and its opponents will do everything they can to discredit the findings. That is why I am proud to be the primary sponsor for May’s $25,000 matching gift campaign.

Starting today, every contribution you make toward this study will be matched dollar-for-dollar. That means your gift will go twice as far towards ensuring that our research reaches lawmakers, the media, and the public.

Can we count on your support today? Whether you give $50, $100, $250, $500, $1,000, $2,500, $5,000, or more, your gift will be doubled immediately. Every dollar will go directly toward educating the public, informing policymakers, and ensuring this study is a success.

You can make a secure online contribution here: fiscalalliancefoundation.org/contribute. If you prefer to mail in a donation, please do so at: Fiscal Alliance Foundation, 31 State Street, Suite 401, Boston, MA 02109.

All donations are tax-deductible, and donor-advised funds and stock contributions are gladly accepted. As always, our members and their generosity are never made public.

Prop 2½ has protected homeowners for forty-six years, but the fight can only continue with your support. Thank you for standing with the Fiscal Alliance Foundation for a better Massachusetts.