A constant battle over property taxes rages in Sturbridge.

Here is an overly simplified view of the battle in order to provide the background for the solution. One side wants improvements and amenities in the town that would raise property taxes.  They are willing to pay the extra taxes for these additions.  The other side is already struggling to pay their property taxes, and feel that they just cannot afford to pay for these additions.

In researching the idea I had, I found that it is already provided for in the laws of the Commonwealth of Massachuestts.

I found an explanation in a document published by the city of Boston, Everything You’ve Ever Wanted to Know About Property Taxes. The relevant section is on PDF page 18, document numbered page 14.

Each city or town assessing all property at its full and fair cash value, as certified by the Commissioner of Revenue, must annually decide whether to adopt a residential exemption within the residential class for parcels that are the principal residence of a taxpayer.

A residential exemption is an assessed dollar amount of value that is exempt from taxation. It is a reduction in the amount of property tax that a homeowner would otherwise be asked to pay. For example, if the residential exemption were $8,000, then a home with a market value of $150,000 would be taxed on only $142,000 of its value.

In Boston, the residential exemption can be between 0% and 30% of the average value of all residential property in a city or town. For example, if the average value of a home was $180,000, the residential exemption could range from $0 to $54,000 of value.

A residential exemption can only apply to the principal residence of a taxpayer. A principal residence is one in which the taxpayer lives and which is used as a permanent home and legal residence. Summer or vacation houses are not eligible.

The residential exemption does not affect the share of the property tax levy to be paid by the residential class, but does affect the taxes paid within the residential class.

For example, an owner-occupied home will receive the benefit of the residential exemption, while a non- owner-occupied residence will not. Further, within the owner-occupied class, the residential exemption would have a greater effect on lower-value properties. The net effect of the residential exemption is a shift of tax burden within the residential class such that there is a higher effective rate on higher-value property than on lower- value property.

The residential exemption is a local option and is adopted in a town by the selectmen, and in a city, by the mayor with approval of the city council.

I do not know if Sturbridge has such an option, but if it doesn’t, this might be a good way to get the two sides of this battle together.  This might also help to solve the problem of the split tax rate that business people in Sturbridge claim is unfriendly to business.  It concentrates the tax relief on the lower income residents, instead of for all residents.

April 12, 2014

The web page for the Sturbridge Tax Assessor’s office does not give any indication that the type of residential property tax exemption discussed in this article is used in the town of Sturbridge.

The Sturbridge Annual Town Election is Monday, April 14.  Polling place is Oliver Wight Tavern, Old Sturbridge Village.  Poll opens at 7:00AM.

The Sturbridge Democratic Town Committee endorses three people in contested races.

• Jacob Ryan for Tantasqua Regional School Committee
• Pat Barnicle for Tantasqua Regional School Committee
• Don Fairbrother for Board of Selectman – one year term

I will be voting for all three.  Of course I will be voting in the uncontested races, too.