Stockbridge — The possibility of a Residential Tax Exemption is a very fickle topic in this town. The tax has been discussed before, and a few weeks before the tax classification hearing in October, it is again under discussion.
The topic is so sensitive that members of the town’s Board of Selectmen and Board of Finance would not respond to multiple calls for comment for this story, but several part-time residents did contact The Berkshire Edge for interviews. One resident, however, criticized via email the writing of this article before one word of it was even written. Thus, the extreme sensitivity of this topic continues for residents in this small town of 2,018 (as of the 2020 United States Census).
The program, according to the state’s Department of Revenue, is a municipal option enacted in 1979 under Chapter 59 of the state’s General Law. If enacted, it “shifts the tax burden within the residential class from owners of moderately valued residential properties to the owners of vacation homes, higher valued homes, and residential properties not occupied by the owner, including apartments and vacant lands.”
Over the years, municipal representatives, including members of Great Barrington’s municipal government, have all discussed the idea of implementing the option. The program is not popular with cities and towns in the state. In the 43 years since the program has been implemented, only 16 communities have enacted the program.
In an email from town Principal Assessor Michael Blay, he estimated that there are 600 full-time homeowners and 653 part-time homeowners in Stockbridge. “…that number is truly an estimate because in that number may be properties that are rented throughout the year and ones that don’t receive a personal property bill for being a second homeowner,” Blay wrote. “The second homeowner number is based on how many second homes this office is taxing for a personal property bill. In reality, it can be higher or lower based on those properties that may be rented throughout the year in which we don’t list for a personal property bill.”
Blay wrote that he did not have an estimate on how much in taxes full-time and part-time residents contribute to the town. When asked if he had an estimate on how taxes paid by both full-time and part-time residents would change if the Residential Tax Exemption program was implemented, Blay wrote in response that the answer “has many layers to it because the taxes are going to change based on the new Fiscal 2023 valuations for all the properties and the tax rate is going to shift to all properties, both eligible or not, if the Exemption were to be approved.
“Those that are at or below the ‘breaking point’ would see the highest tax reduction,” Blay wrote. “But those that are above that ‘breaking point’ could very possibly see an increase even if they receive the exemption because of the higher tax rate needed for the levy shift. Those that will for sure not see any reduction are the second homeowners and those that have multi-family dwellings.”
The part-time residents who were interviewed for this story expressed anger about the proposed Residential Tax Exemption, including Joseph Newberg, who purchased his home in town in 1980.
“My family moved here because we love the culture of Stockbridge and it’s a friendly place,” Newburg said. “I particularly love that it’s a place where there has been no distinction between full-time and part-time residents. We enjoy the town’s cultural and physical attributes. A lot of Tanglewood people have cottages here, along with people who are trying to escape from the cities to the countries.”
Newburg said that the Residential Tax Exemption, if implemented, would “damage the culture of Stockbridge in a very unfortunate and bad way.” “I’m not making this up, I’m not threatening it, I’m just observing,” Newburg said. “This is going to divide us [in town]. It will make [part-time] residents into second-class citizens. It will put a big damper on the non-resident populations and will damage our support for local institutions.”
Newburg said that the Residential Tax Exemption would take away from the financial support of local organizations and businesses. “The whole thing will be a disaster,” he said. “It will allow a tax exemption for property that is owned by full-time residents below a certain break-even point. In Stockbridge, that value is estimated to be $2 million of assessed valuation. It will lower tax bills on those properties and will raise the tax bills on properties owned by part-time residents, regardless of the property valuation. This is not fair.”
Part-time resident Richard Jaffe, who is also a resident of Ormond Beach, Florida, is strongly against the Residential Tax Exemption. “To me, this has absolutely nothing whatsoever to do with helping the elderly or those who are struggling in this day and age,” Jaffe said. “Many, if not most second homeowners in town have provided significant assistance to numerous social service agencies, churches, and synagogues. In many ways, we have already given our support to the elderly and those who are struggling. But this is not what it’s about. What this is about is that the local governments are requiring us to do even more for the sole reason that we’re part-time residents. Simultaneously, they are reducing the responsibilities of others because they are full-time residents. It is expanding class warfare in the communities.”
Jaffe said that part-time residents pay “the price of admission” to live in the Berkshires in the form of real estate taxes. “Part-timers pay the full 12 months of real estate taxes, even though most of us are only here a few weeks or months a year,” Jaffe said. “The issue is not paying more or fewer taxes. The issue is whether or not those taxes are being fairly apportioned. The fact of the matter is that just because you’re a part-time resident, doesn’t mean that you are wealthy. Just because you are a full-time resident doesn’t mean you are financially challenged.”
Jaffe said that he and other part-time residents have been discussing scenarios if the Residential Tax Exemption is implemented, “some of which includes leaving.”
“Probably the one thing that riles up part-time residents is the fact that we have no official say in the matter,” Jaffe said. “As part-time residents, we can’t vote [in elections or town meetings]. That’s not the Selectmen’s fault, it’s part of the laws of the Commonwealth. It just seems like taxation without representation.”
While the tax classification hearing is usually held in October, as of the writing of this article it has not been scheduled.
