Edgartown is weighing a tax exemption that would give year-round homeowners a break on their property tax bills by shifting some of the burden onto seasonal property owners. 

The select board held a listening session Thursday with the board of assessors to talk about the residential tax exemption, which is implemented in several other Island and Cape Cod towns. 

Edgartown officials said the meeting was designed to allow residents to ask questions and raise concerns about the exemption before the select board votes on the measure in the fall. 

“The residential exemption is by no way determined right now, nor will it be determined anywhere in the next two weeks,” said James Hagerty, the town administrator. “Technically, this gets decided statutorily in November when the town sets the tax rate.”

Enacted in 1979, the residential tax exemption is a local option available to Massachusetts municipalities that shifts a chunk of the tax burden from certain year-round homeowners to non-primary dwellings, such as vacation homes.

“It is designed to provide tax relief to property owners who use their home as their primary residence,” said Patti Roads, Edgartown’s principal assessor. 

In Massachusetts, the highest exemption allowed has been 35 per cent, though the Affordable Homes Act, passed in 2024, allows Island towns and other seasonal communities to go up to 50 per cent. 

In Edgartown, there are about 5,600 residential properties. Of those, there are 3,317 seasonal residential parcels and 1,311 year-round properties.

A $1.5 million year-round home with a 5 percent exemption would see a tax reduction of around $277 dollars annually; a seasonal home of the same assessed value would see its bill go up by $45. 

Towns that have enacted a residential exemption often start at a lower percentage and go higher depending on how implementation works out. For instance, West Tisbury raised its exemption last year from 5 per cent to 30 per cent. 

Oak Bluffs has an exemption of 15 per cent and Tisbury is at 22 per cent. 

At Thursday’s meeting, some residents voiced concerns about vacant lots being turned over due to the exemption. 

Board of assessors member Alan Gowell said the exemption could increase tax on vacant lots, but it would likely be negligible. 

“I don't think that would be the difference that would make you want to sell that parcel,” said Mr. Gowell.

Edgartown has started sending out pre-qualification letters to homeowners to prepare in advance of the select board’s decision this fall.