I have not made any improvements to my home, how can my value increase? Can my taxes increase more that 2.5%?

Since assessments must be set at market value, rising real estate values in the Town resulted in higher assessments.  As property values change in the marketplace (sales), those changes must be reflected in the assessments.  All properties, however, do not change in value to exactly the same degree.  Many factors influence values.  Among the numerous factors to be considered are location, condition, size, quality, number of baths, finished basement, garages, additions, and traffic.