There are all kinds of political debates — this is one about sensitivity and caring, livability, community, and neighborliness. The debate took place at a Select Board meeting. At issue was the Residential Exemption — an optional tax plan made available to localities by the Commonwealth. Town Select Boards can implement the Residential Exemption without Town Meeting approval. So, what did our Board do?
What is the Residential Exemption?
According to Mass.gov, “the residential exemption reduces your tax bill by excluding a portion of your residential property’s value from taxation.” A tax bill is a function of the tax rate and assessed value — reduce the value and thereby reduce the tax owed. It is a way to make Stockbridge more affordable for lower income folks, elderly on fixed incomes, and owners of the less expensive homes. It eases the tax burden on those who need relief the most.
Under rising pressure on our real estate market, it may help Stockbridge retain moderate-priced housing and not become an enclave of only high-priced housing that is dark all winter.
How does the Residential Exemption work?
In an oversimplified example, Stockbridge needs $10/year to run the town. With the Residential Exemption, some pay a reduced tax based on a reduced percentage of the assessed value. Yes, but, Stockbridge still needs $10/year, so the taxes on other houses are raised and $10 still is collected.
How do you decide who pays more and who pays less? The Commonwealth only allows the percentage-reduction for residents — those who live here 183 days or more per year. Non-residents’ evaluations cannot be reduced. Actually, the Commonwealth makes all the decisions but two. The percentage by which the assessed value can be reduced (up to 35% allowed by the Commonwealth) is decided locally.
For those who struggle to pay their taxes; those on fixed incomes, those who may be forced to request tax deferments or to sell due to the tax burden — those folks are relieved. The other local decision? To adopt it or not.
If we do nothing
If Stockbridge does nothing, the marketplace will shape our community. With the Residential Exemption, a different scenario is possible; a correction of the distortion in the marketplace is possible. The possibility our police, firemen, the elderly and young families could live in town.
The Stockbridge Select Board dismissed it by a vote of two to one. Patrick White voted for it.
Carole Owens, Managing Editor
Next Issue Part Two: Why oppose the Residential Exemption?
