Tax Rates, Exemptions, and Credits

More Controversial

I’ve heard many times over from residents and local officials alike that something needs to be done to alleviate the tax burden on homeowners, and I agree. However, few seem willing to discuss the matter further than simply acknowledging it. If we’re going to have a serious discussion about reducing the pressure on homeowners, especially those on a low or fixed income, we need to examine tax policies. There is no solution that everyone will be happy with; someone will walk away upset, but doing nothing solves nothing.

It may take some time, but I want to work towards creating a working group or special committee, sanctioned by the City Council and made up of residents, business leaders, and officials, which would examine existing tax policies that could shift the tax burden off of a significant portion of the owner-occupied residential property within the city. A few options that exist are:

Split Tax Rate - Uses different rates for residential and commercial properties, thereby shifting more of the tax burden to commercial, industrial, and personal property tax classifications, lowering the residential tax rate.

Residential Tax Exemption - Reduces the taxable assessed value of low to moderately valued residential properties and shifts it to higher-valued homes and residential properties not occupied by the owner (rentals, apartments, vacant land). The tax rate increases, but the total tax bill is lower for low to moderately valued properties since the taxable assessed value is significantly lower (up to 35% lower).

Senior Tax Exemption - Allows for an increased tax exemption for residential properties owned by a senior whose income in the previous year made them eligible for the circuit breaker income tax, if they’ve lived within the municipality for 10 consecutive years. (Bill H.3099)

These exemptions could be used in conjunction with optional exemptions for Open Space (discount of 25% or more) and the Small Commercial Exemption (10% reduction for businesses with less than 10 employees and property less than $1 million) to better steer the priorities of the community. It is not my decision to make alone, nor should it be, but in full transparency, I am supportive of a Split Tax Rate, especially when implemented alongside a Small Commercial Exemption.

2021 DLS Article on a Split Tax Rate with mentions on Residential Tax Exemption, Open Space Discount, and the Small Commercial Exemption: https://www.mass.gov/doc/splitting-the-differences-reviewing-tax-rate-shifts/download

Less Controversial

Less controversial ways of helping certain groups with taxes include tax credit programs and exemptions for seniors, veterans, the visually impaired, and the survivors of veterans and first responders who lost their lives in connection to their service. Some of these exemptions don’t need to be adopted at the municipal level, but often the conditions for eligibility and the maximum amounts applied are set at the local level. An example of this is the HERO Act, which was passed in August 2024 and doubled the amount that could be earned by veterans participating in the Veterans’ Work Opportunity Tax Credit program. It took Leominster a year to adopt the increases, with it finally being brought to the attention of the City Council in August 2025. That’s why it is important we regularly ensure our local ordinances are up-to-date.

As a member of the City Council, I will always push for the maximum exemptions and tax credits for these special groups, I’ll work to expand them where possible, and I’ll certainly advocate for making the application process more accessible. That advocacy will extend to the local, state, and federal levels.