Effective immediately, the Town of Provincetown has expanded its Residential Tax Exemption from 25% to 35%, the maximum allowed by state law. The Select Board took this step to further support year-round housing at their meeting on August 28, 2023.
The Residential Exemption program, designed to address the challenges faced by year-round residents, aims to foster a more equitable distribution of property tax responsibilities within the residential class. This approach shifts a portion of the tax burden from year-round residents to residential properties not occupied by the owner year-round.
In the Town of Provincetown, there are two distinct ways for properties to qualify for the Residential Exemption. The first is based on the residency status of the taxpayer, providing relief for domiciled residents. The second, is based on the residency status of a year-round renter. Non-domiciled taxpayers who rent on a year-round basis to qualified renters are also eligible for this exemption. By extending the benefits of the Residential Exemption to year-round renters, Provincetown is actively fostering a supportive environment for both property owners and year-round renters.
This program not only recognizes the importance of housing stability for the Town's permanent residents, but also acknowledges the diversity and richness that year-round occupancy brings to the community. The Residential Exemption will reduce the assessed value of eligible properties and correspondingly lower the real estate tax burden for qualifying taxpayers.
As the first town on Cape Cod to implement a 35% Residential Exemption, the Town of Provincetown is showing its continued commitment to innovative solutions to prioritize year-round housing and maintaining affordability for longtime residents.
Residents must apply for the exemption, and are encouraged to complete their application as soon as possible. More information about the Residential Exemption program, its eligibility criteria, and the application form can be found at https://www.provincetown-ma.gov/1045/Residential-Exemption.