Updated, Nov. 21
The town of West Tisbury, looking to aid year-round residents and noting housing difficulties on the Island, is shifting the tax burden away from locals to seasonal residents.
The select board voted on Wednesday night to enact a 30 percent residential tax exemption — which is the largest passed by an Island town to date — which will provide a noticeable decrease in tax bills for locals.
The residential tax exemption is a municipal tool that has been gaining momentum on the Cape and Islands, where housing shortages have been felt more acutely, and have led to municipalities and businesses having difficulty staffing positions.
While West Tisbury increased its exemption rate to the highest level among the six Island towns, the select board stopped short of going as far as it could. Part of a massive state housing law signed by the governor last year allows seasonal communities — like Martha’s Vineyard towns and Nantucket — to increase residential tax exemptions up to 50 percent.
At 30 percent, the average West Tisbury year-round homeowner — with a home valued at about $1.5 million — will save roughly $2,000 a year on their bill, according to the town’s assessor. Meanwhile, seasonal residents with a second home in West Tisbury at the median home value would pay between $445 and $800 more a year in property taxes.
As for other homeowners on the Island, Tisbury has set a seasonal exemption at 22 percent for the past few years; Oak Bluffs, voting on Thursday night, decided to keep an exemption at 15 percent, the same as last year; Chilmark, Aquinnah, and Edgartown have yet to introduce the concept, though town officials have said they could soon consider the idea. On the mainland, Chatham recently adopted a 35 percent exemption, Provincetown and Truro have also instituted a 35 percent rate, and are looking at potentially boosting it, while Nantucket is set at 25 percent, but the town is exploring a much higher rate.
In West Tisbury Wednesday night, the board was initially split on the idea. Board member Skipper Manter, famous for supporting smaller budgets, understood that many seasonal, wealthier residents could shoulder the extra burden with the new exemption. But he said that many are generational homeowners who can’t necessarily pay more, and he suggested the change would be unfair. He questioned why seasonal residents, who don’t require or use the same amount of services compared to locals — especially within the school system — should take on more of the burden.
Manter also said that instead of shifting taxes elsewhere, the town should focus its efforts on saving money and cutting down on taxes.
Other board members and Island officials pushed back, noting that they have tried to keep taxes low. But on the horizon is a substantial tax increase across the Island with a Martha’s Vineyard Regional High School building project, estimated at roughly $350 million.
Plus, year-round residents are having difficulty staying on the Island. The Martha’s Vineyard Commission has found that more than half of the properties on the Vineyard are vacant in the winter, with seasonal residents arriving only in the summer. And that seasonal population is driving up the cost of housing.
The board initially considered a 25 percent increase, but people attending the meeting pushed for a higher number; they included Laura Silber, housing coordinator at the M.V. Commission.
“If the town can make this good-faith effort to support preservation of year-round homeownership opportunities by enabling people to stay in their homes by reducing the tax burden, it’ll go a long way,” Silber said. “I think it’ll also send a very strong signal to the state that West Tisbury is taking proactive steps toward securing home ownership situations that already exist.”
West Tisbury resident Joanne Taylor supported an increase in the exemption as well. She said that as a senior, an increasing tax bill could eventually force her off the Island. Introducing a residential tax exemption would give her relief. “I think it would be a shame, for me, it would be frightening for me to consider losing my home and having to move off-Island,” she said.
The board was unanimous in its support for a 30 percent increase.
Prior to the vote, the town assessor, advising the select board, provided a number of possibilities. At a 20 percent exemption, the owner of a home valued at $1.48 million would see an annual saving of $1,525 on their tax bill; at 35 percent, they would see a saving of $2,800; and at 50 percent, the savings would be about $4,212.
On the flip side, second homeowners would have paid a little more in West Tisbury. At a 20 percent residential exemption, a homeowner with a $1.5 million home would pay about $450 more; at 50 percent, they would pay approximately an additional $1,200.
Updated to include information that Oak Bluffs voted in a 15 percent residential exemption.
West Tisbury’s decision to adopt a 30 percent residential tax exemption is exactly the type of practical, forward-looking step the Island needs.
With more than half of Vineyard homes sitting empty in the winter, the year-round community is under growing pressure. Rising taxes, stagnant wages, and a housing market shaped by seasonal demand have pushed many long-time residents to the brink.
A modest shift in the tax structure is not a penalty for seasonal homeowners; it is one of the few tools available to help stabilize the local population that keeps this Island functioning year-round.
The state’s decision to allow seasonal communities to go as high as a 50 percent exemption shows that Beacon Hill recognizes the imbalance. If the goal is to preserve homeownership and prevent displacement, it’s reasonable to ask why more Island towns aren’t considering levels closer to 35 or even 40 percent.
Other communities, including Provincetown, Truro, and Chatham, have already moved to 35 percent and are exploring whether to go higher.
For seniors and working families who said even a small reduction could help them remain in their homes, this policy offers real and immediate relief. West Tisbury has taken an important step forward.
The 22% tax exemption for Vineyard Haven was reduced from a 25% excemption that was in place. The reasoning at the time of the BOS of Vineyard Haven for reducing the excemption was by two BOS members at that time who stated in public meeting it wasn’t fair to seasonal owners. And one board member read a letter from owners of West Chop homes who felt that the excemption wasn’t fair to them the owners of the properties located on West Chop. The BOS at that very meeting without any public discussion period or referring the plan to reduce the year round home owners excemption to the finance committee, voted to reduce our year round excemption. I would like to suggest since all it takes is the BOS to have a brief discussion at one public meeting and then vote on the excemptio rate our current BOS should take up this discussion and vote to reduce Tisbuy year round home owners tax reduction rate to either match or surpass the highest rate by any other town on the island. Less our town becomes less desirable to live in year round. Now is the time to give us year rounders a break, your retirees, school employees, public safety employees, transportation employees, construction industry employees, town employees and all others who work and live this wonderful town of Tisbury. All of us that call the island home need help from each other to help keep this special place alive and healthy.
And how will the town verify this information when a married couple can own a home here and a home in CT or FL and say their summer home here is their “permanent” address to avoid paying taxes and the non resident boat fees.
It is far too easy to get these exceptions in Massachusetts, especially to avoid paying personal property taxes and to acquire the boat exemption.
All you need do is put your name on the street listing or show a bill (electric) etc. with your name and address on and boom you’re except from the property taxes and you get to save $$$ on your one boat ride a summer to come stay in your multi million dollar home!
In all honestly these exemptions don’t help anyone but the millionaires who own multiple homes and know the loop holes to go through to save a penny here and there.
The island will be full of only millionaires one day if we keep going at the rate we are.