To the editor:
Having read the consultant’s report on the possible residential real estate tax exemption (RRETE), I suggest more thorough study by the Great Barrington Finance Committee on this program before voting on recommendations to the Selectboard. I have concerns and questions:
- The RRETE is not progressive. Many residents who purchased their homes decades ago now live on low, fixed incomes, but whose homes have appreciated above the average. They will be taxed more. Conversely, those who are well-to-do but who live in lower priced homes will get a tax break. Assessed value on homes is no substitute for real income.
- As collateral damage, we would be increasing taxes on many middle-income, full-time residents. In accordance with state law, the RRETE applies not just to nonresident property owners but to year-around residents whose properties are assessed at more than average value.
- The RRETE was discussed during the last year of my Chairmanship of the Finance Committee. The year after, it was put to a vote. The Finance Committee rejected it. A record 100 homeowners and business people attended the meeting at the GB Fire House. Surely the same questions should be raised.
Would businesses need to be taxed an additional 10 percent or more to fund the residential taxes breaks? Many business people attended the meeting and spoke against it as a hardship. In many cases, this hardship has worsened.
Who would determine which taxpayers are residents? Would the assessor be the final arbiter for those who now split their time equally between homes as has been facilitated by the Internet?
Would additional Assessor’s staff be needed to handle the new workload, reviewing tax records, handling appeals of those who have changed their residences?
- Finally, as former Finance Chair, I analyzed the files of our Principal Assessor (since then, we have had two “new” Principal Assessors) and found difficult issues. As examples:
Many full-time residents owned more than one property. Would their second properties be subject to the higher “second home” rate? Some of these residents had buildings assessed below the average, would they receive the tax breaks?
Some homeowners used GB P.O. Box addresses, but I recognized were not living in GB. Would the assessor ferret these out?
It is fine to use averages, but in my analysis on individual households, I saw very few qualifying for sizable tax breaks and the majority of those below the average would have received $10-100, a very small percentage of each tax bill. Would it be worth adding to the town payroll in order to provide staff review of complex RRETE issues?
Our assessor is new to the Town and new to this issue. More studies are needed before taking steps to introduce such major tax changes. The RRETE program may not be what it appears to be. Other programs would be more effective in providing affordable workforce housing and helping seniors.
Sharon Gregory
Great Barrington
