For our Island to be a sustainable place to live for all of us, we are going to have to think much more about how the year-round homeowners are doing. To that end, the towns that make up the Island should be doing everything they can to protect year-round homeowners. Period. That is what local governments are for.
As we all know, one of the gravest threats to the Vineyard way of life is affordable housing.
Earlier this year, Gov. Maura Healey signed legislation, the Affordable Homes Act, filled with benefits to areas with a lot of tourism and second homeowners to help preserve housing for local families and workers. In the “seasonal communities” section of the law, as it has been known, Cape and Island communities are being given the opportunity to dramatically shift the burden of taxes away from year-round residents and onto the shoulders of seasonal homeowners through a residential tax exemption.
In light of the housing struggles and the new state law, we are pleased that the town of West Tisbury decided to move forward with one of these residential tax exemptions earlier this month. The select board should be applauded for following in the steps of Oak Bluffs and Tisbury in initiating the exemption, despite some intense pressure to do otherwise.
At a public meeting on Nov. 13, the board moved to give year-round homeowners a 5 percent exemption. About 1,000 homeowners in West Tisbury are eligible, and the median residential value of $1.5 million will see cost savings of $344 annually, according to town officials.
But we believe the board could have even gone further. The 5 percent is so minimal that residents with the exemption are actually going to see a slight increase on their bills, because the town’s spending is expected to increase.
We also think other towns should consider a residential tax exemption. Going forward, we are undoubtedly facing higher local taxes in the coming years. Aside from the increase in costs everywhere, the high school project is expected to cost more than $200 million; and then there is wastewater — early indications show projects will cost $100 million in Oak Bluffs and $100 million in Edgartown. Those will be tough costs for locals already struggling to pay for their everyday needs.
With residential tax exemptions, locals will be hit with less of this financial burden.
On the other side of the argument, some second homeowners in West Tisbury argued during public hearings that the exemptions would create an us-versus-them tension, pitting year-rounders against seasonal residents. We find that hard to believe — most will likely forget the town made the decision, in due time.
The most reasonable argument against the exemption is that seasonal residents don’t take advantage of the same year-round services that Islanders do, so they shouldn’t be paying more local taxes. There is some truth to this, of course, as seasonal residents don’t send their kids to the schools, they don’t need ambulances in the winter, and their cars don’t wear down our roads as much.
But while that might seem fair, it’s also shortsighted. Take a look at the impact that second homeowners have had on the Island since the COVID-19 pandemic. The median home price of the Island before and after the pandemic basically doubled, from about $800,000 to $1.4 million. It would not be fair to blame this all on second homeowners, but it is important to evaluate how the dynamic has led to higher costs for our younger generation hoping to buy into the Vineyard market. And we have to ask: Is that fair?
A more important equation than what is fair is the existential question for this Island: What is sustainable? A 5 percent exemption, while it’s a step in the right direction, isn’t enough.
Under the Affordable Homes Act, towns can up their residential tax exemptions to a whopping 50 percent.
In West Tisbury, town officials floated the idea of a 35 percent tax exemption, which they said could translate to approximately $2,000 in annual savings for the average year-round household. That would be a tangible change that would put real cash in the pockets of taxpayers.
It should be said that seasonal second homeowners have a meaningful and positive impact on the Island community. Undoubtedly. They are part of the charm of the Vineyard way of life. We don’t want to price them off the Island, but they can be part of a solution to keep the Island charm intact.
We believe that communities can find a middle ground that helps the year-round Island community sustain itself, while also allowing seasonal residents to continue to enjoy this Island as well.
While 50 percent might put too much of an onus on seasonal residents, the state legislature and governor have provided tools to help crack the code on this balance, and unlock all of the potential for the whole Island to be better off. We think that towns can and should use every tool in the shed to get this right.
