West Tisbury Implements Resident Tax Exemption

The Town of West Tisbury is moving to ease the tax burden on its year-round residents by shifting some of it onto seasonal residents. This change comes in response to ongoing housing challenges faced by locals on the island.

During a recent meeting, the Board of Selectmen approved a 30 percent tax exemption for residents, a significant increase that is now the highest in any town on the island. This decision aims to alleviate the financial pressures on local homeowners.

Across the Cape Islands, residential tax exemptions are becoming more popular as communities grapple with severe housing shortages and difficulties in attracting local workers. West Tisbury has raised its exemption rate significantly, though the committee opted not to use all available measures. With a new state housing law, communities like those on Martha’s Vineyard and Nantucket are permitted to increase their tax exemptions by up to 50 percent.

The average year-round home in West Tisbury is valued at around $1.5 million, meaning the 30 percent exemption could save homeowners approximately $2,000 annually. On the flip side, seasonal residents with median-priced second homes may see their property taxes rise by $445 to $800 each year.

Other towns on the island have set different exemption rates: Tisbury recently established a 22 percent exemption, while Oak Bluffs offered 15 percent last year. Chilmark, Aquinnah, and Edgartown are still deliberating this option. In contrast, Chatham has implemented a 35 percent exemption, and both Provincetown and Truro are also contemplating increases. Nantucket currently stands at a 25 percent exemption but is seeking to raise that figure.

During the West Tisbury meeting, opinions were mixed. Board member Skipper Manter, known for his cautious approach to budgets, expressed concerns about fairness. He argued that many long-term homeowners might struggle to absorb any additional costs and questioned the rationale behind burdening seasonal residents. “It seems a bit off since they may not use as many services as locals,” he remarked.

Manter suggested that the focus should be more on cutting costs instead of redistributing the tax load.

However, other board members and officials countered his views, noting the difficulty of maintaining low taxes amidst the anticipated tax increase linked to the $350 million construction project for the Martha’s Vineyard Regional High School.

Year-round residents are facing increasing challenges to remain on the island, with a study by the Martha’s Vineyard Commission indicating that over half of properties are vacant during winter months, primarily because seasonal residents only return for the summer. The influx of seasonals is contributing to rising housing costs.

Initially, the board considered a more modest 25 percent exemption, but audience members, including Laura Silver, the housing coordinator, advocated for a more substantial increase.

Silver emphasized that a strong commitment to reducing tax burdens would significantly aid in maintaining year-round homeownership opportunities. “This can send a message that West Tisbury is proactively supporting its residents,” she stated.

Supporting this sentiment, West Tisbury resident Joanne Taylor, a senior citizen, voiced her concerns about how rising taxes could affect her situation. She reflected, “The thought of losing my home and having to leave the island is terrifying,” and mentioned that this exemption would provide her with peace of mind.

Ultimately, the board voted unanimously in favor of the 30 percent exemption, demonstrating their commitment to supporting local homeowners.

Before the vote, the town assessor laid out potential scenarios. With a 20 percent exemption, a homeowner with a $1.48 million property would save around $1,525 in taxes. At a 35 percent exemption, the savings would amount to $2,800, and at 50 percent, approximately $4,212.

In contrast, second-home owners would incur slightly higher costs in West Tisbury, with the 20 percent homestead deduction resulting in around $450 more per year for a $1.5 million property. With a 50 percent exemption, that number could rise to about $1,200 additional in property taxes.