City Council explores property tax reforms for homestead exemptions and accessory dwelling units

During the recent Town Council meeting on February 5, 2025, in New Shoreham, discussions centered on refining the property tax system to better accommodate community needs. The council highlighted past successes with special legislation aimed at improving property tax structures, particularly through the implementation of a homestead exemption. However, it was acknowledged that the current system still requires further refinement.

A key concern raised was the inability of the existing homestead exemption to adequately reflect the contributions of commercial property owners who provide housing for their employees. For instance, grocery store owners who offer housing options were cited as examples of responsible property management that should be recognized within the tax framework.

Additionally, the council explored the potential for new property tax tools to incentivize the development of accessory dwelling units (ADUs). These units, which are now mandated to be rented year-round, could benefit from tax incentives that encourage investment in such housing options. The discussion emphasized the need for innovative solutions to support housing availability in the community.

The council also considered the implications of mixed-use properties and the treatment of non-owner-occupied residences. A proposal was made to explore tax benefits for long-term tenants residing in these properties, aiming to create a more equitable tax structure that recognizes their contributions to the community.

In summary, the meeting underscored the council's commitment to enhancing the property tax system to better serve both residents and property owners. As discussions continue, the council aims to develop actionable strategies that address housing needs while promoting responsible property management. The next steps will involve drafting potential legislation to implement these ideas and further engaging with community stakeholders.