Council authorizes resolution seeking state enabling legislation for tax classification to support long‑term rentals

The Town Council voted on March 3 to authorize a resolution requesting state enabling legislation that would permit the town to adopt a local tax classification plan distinguishing owner‑occupied and non‑owner‑occupied property for tax purposes.

Under the proposed enabling language presented to the council, a municipality could adopt a tax classification by ordinance that would allow properties occupied by year‑round residents — whether they are the owner or a long‑term tenant living in a unit on the property — to receive the owner‑occupied tax rate. The enabling language would replace the homestead exemption mechanism and instead set owner‑occupied and non‑owner‑occupied tax rates locally; staff said the town would likely set the differential the first year to mirror the existing homestead benefit.

Amy (town staff) told the council the enabling legislation would not be immediately effective for tax bills due this July and that implementing ordinances and further local work would take time. After a motion and second, the council approved the authorization; the vote was taken by voice and the chair announced the ayes had it.

Council members discussed details including how rental apartments or separately assessed residential portions of mixed‑use properties would be treated and the council asked staff to develop implementation estimates so the council could evaluate impacts on tax rates and revenues before any local ordinance was crafted.