12/03/2001 SELECT BOARD Minutes - Laserfiche WebLink

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Town of Mashpee/Mashpee Water District Classification hearing December 3, 2001 Each year at this classification hearing,the Board of Selectmen and District Commissioners are asked to make four choices relating to the manner in which the Town is taxed. The four choices are as follows: 1. Split Tax Rate: The Selectmen and District Commissioners may choose to tax commercial, industrial, and personal property(C.I.P.) at a rate up to 50% greater than the "regular", unadjusted tax rate. The increase to C.I.P. properties results in a decrease to residential properties. In the case of Mashpee for fiscal year 2002, a full 50%increase to C.T.P. reduces the residential rate by about 5 %. In other words; at the maximum split rate a 5200,000 residential property would save $90 while a $200,000 commercial property would pay an additional$890. 2. Small Business Exemption: In order to buffer the impact of a spit tax rate on small businesses there is a provision that allows the Selectmen and Commissioners to offer a tax exemption properties housing businesses with 10 or fewer employees. Approximately half of the businesses in Mashpee currently qualify for this exemption.The exemption is a moot point if the tax rate is not split. 3. Open Space Discount: The Selectmen and Commissioners may offer a discount of up to 75% to land identified by the Board of Assessors as Open Space. The Board of Assessors only classifies property as Open Space when it has legally enforceable deed restrictions. Open Space properties in Mashpee are currently assessed at a rate that reflects their marginal marketability so this option is not necessary. 4. Residential Exemption: The Board of Selectmen and Commissioners may elect to offer a tax exemption of up to 20% of the average residential property value to all domiciles. The exemption is funded by an increased residential tax rate. The result is lower taxes for many owner occupied dwellings and higher taxes on vacant land, non-qualifying residential dwellings and, due to the higher tax rate, qualifying properties with a value greater than approximately$360,000.