11/06/2024 SELECT BOARD Minutes - Laserfiche WebLink

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Select Board Minutes November 6, 2024 APPOINTMENTS AND HEARINGS Tax Classification Hearing; Director of Assessin Joseph Gibbons: (continued) Discussion followed with respect to a residential exemption. The Board of Assessor's recommended. the percentage be "No higher than 20%" due to potential overly deficits and the relative newness of the residential exemption in Mashpee initiated in FY2023. It was noted however, the tax policy is not set by the Board of Assessor's. The Select Board determines the options. The residential exemption may not exceed 35% of the average assessed value of all residential properties, and a fractional tax rate is not allowed. Numbers must be whole. The tax rate is also set after approval of the residential exemption. Adopting a residential exemption also increases the residential tax rate. A single tax rate, a residential factor of "1" results in the taxation of all property at the same rate; each property class pays its full and fair cash valuation share of the tax levy. The Town ofMashpee has historically maintained a single tax rate. Scenario's were presented in increments from 5% to 35%. Using an average single home value of $835,600, the tax rate with a Residential Exemption of 5% is 6.20%. The amount of tax exempted per parcel is $259.04. With a Residential Exemption of 20%, the tax rate with a Residential Exemption is $6.42% per $1,000 valuation. The amount of tax exempted per parcel is $1,072.91. Last year 2,512 abatement applications were received out of 5,000 eligible applicants. Discussion followed with respect to potential overlay shortfalls. Any deficit must be addressed on the FY26 recapitulation worksheet prior to setting next years tax rate. The current overlay surplus is $1,129,527. It was noted that 17 communities of 351 in the Commonwealth have residential exemptions. On the Cape, the Town of Barnstable was noted to have adopted a residential exemption for the past 20 years increasing last year's exemption from 20% to 25%. The Governor may approve a higher residential exemption rate for resort towns to assist with the struggle of tax payments for year-round residents. An in-depth discussion followed with respect to providing relief of the financial tax burden. The Select Board opened the hearing to solicit comment. Karen Faulkner indicated she has studied the figures. In her opinion, offering a 5% exemption is a waste. 15% is better, but 20% offers more to qualified residents. Ms. Faulkner requested the Select Board consider a 20% Residential Exemption stating this is an opportunity to embrace the community for those living paycheck to paycheck.