Frequently Asked Questions

What properties qualify for the exemption? 

Answer: If you claim your home as your primary residence, then your property qualifies. Your primary residence is typically identified on your tax return, but other proof is permitted:

• Driver’s License/State ID showing the appropriate Great Barrington, Massachusetts address.

• Voter Registration

• Vehicle Registration

• Income Tax Returns

• Utility Bills: Recent bills

• Bank Statements/Paystubs

What is the break-even effect? 

Answer: Granting the exemption to residents makes the tax base smaller, so to raise enough revenue to fund the town budget the tax rate must be higher. The net effect of applying the higher rate to the smaller base is still a lower tax bill for nearly all full-time resident homeowners. With a 20% exemption, the bill for a $375,000 home would be cut by 19%. For second homeowners the tax bill will be higher, because they cannot take the exemption. Some residents, living in the most expensive homes, will also pay more, since at high values the effect of reducing the taxable value is offset by the effect of increasing the rate. The bill for a $1,200,000 home, after taking a 20% exemption, would rise 6%. The “break-even” range where the tax bill would not change is about  $961,040. Nearly 90% of owner-occupied homes in Great Barrington will pay less because they are valued below the break-even range. Half of the properties valued above this level are second homes.

How will the RTE affect seniors?

Answer: The overwhelming majority of senior residents will see their property tax bills reduced. Some seniors in higher-value homes valued above the break-even point may see a small increase in their tax bill. In addition, there are four state programs help seniors with property taxes including the Massachusetts Senior Circuit Breaker Tax Credit.

Another senior tax break which must be locally adopted) is MGL Chapter 59, Section 5, Clause 41C ½ Elderly Exemption would augment the residential exemption even further to reduce seniors' taxes. The additional exemption could be up to 20% of average value. The income qualification is the same as for the circuit breaker: household income below $112,000. Unlike the Circuit Breaker which limits home value to $1.3 million, there is no limit on the value of the property under a 41C ½ Elderly Exemption.

What if my home is in a Trust or LLC?

Answer: If your home is held in a trust and: 1) you claim your home as your primary residence, and 2) you are the beneficiary of the Trust, then your home qualifies for the exemption. For many seniors, this is an important consideration.

If your home is held in a LLC and: 1) you claim you home as your primary residence, and 2) you (or you and your spouse) are the only members of the LLC, then your home qualifies for the exemption.  This is an important consideration for many tradespeople and landlords.

Properties held in multi-member LLCs and corporations do not qualify.

How will the RTE affect rental properties?

Answer: Rented homes and apartments may not take the exemption (except for owner-occupied duplexes and triplexes) so it could put upward pressure on rent. The town has two options to address this:

 (1)Home rule legislation that would extend the RTE to properties occupied by full-time resident renters as Provincetown did;

 (2) Or, adopting a state law program of property tax relief for long-term rentals [linsubject to income and rent limits (under MGL Chapter 59 Section 5-O.)

How will the RTE affect commercial properties?

Answer: Commercial properties are unaffected by the RTE. Residential and commercial properties are handled as two separate categories for property tax assessment purposes.

What is the "exemption rate"?

Answer: The exemption rate is a percentage of the town's average residential property value (the mean of all assessed property values). This percentage is used to determine the amount deducted from a resident's home value before applying the property tax. For example, if the average property value is $500,000; and the exemption rate is 10%, then the exemption would be $50,000. If the exemption rate is set at 20%, then the exemption amount would be $100,000. All residents get the same exemption regardless of property value.

Who pays less?

Answer: Roughly 90% of owner occupied homes in Great Barrington will see a decrease in their property tax bill. On a percentage basis, the more modest the home, the greater the benefit. Many of these more modest homes are occupied by seniors, young families, and our local workforce.