Acton assessor outlines tax-exemption programs and new state option to incentivize affordable long-term rentals

CJ Carroll, Acton's principal assessor, told the Select Board on Sept. 8 that the town provided just under $670,000 in tax relief across multiple programs in 2025 and outlined a newly enacted state option that could incentivize property owners to rent units at affordable rates.

Carroll said the new state option (Chapter 59, Section 5.0) "provides an incentive for property owners to rent units at an affordable housing rate to specifically low income tenants," and recommended the town study how to implement the authority before bringing any bylaw or policy to town meeting.

Why it matters: the programs discussed provide direct relief to seniors, veterans and other eligible residents and are a practical lever for locally targeted housing policy. Carroll told the board the Chapter 59 option could expand local tools to encourage long-term affordable rentals without creating deed-restricted units, but that the provision requires careful design so owners will use it.

What Carroll presented

Carroll first reviewed Acton's existing exemptions and comparable totals in neighboring towns. "In 2025, Acton provided just short of $670,000 in tax relief," he said, attributing that total to a mix of statutory exemptions (for seniors, veterans, surviving spouses, blind persons and hardship cases), CPA exemptions and deferrals. He said other nearby towns showed higher totals mainly because they used deferrals, which must be repaid, whereas Acton's figure is comprised largely of permanent exemptions and CPA reductions.

Carroll highlighted the circuit-breaker program, which ties property-tax relief to the state income-tax circuit-breaker credit. "It ensures that real estate taxes do not exceed 10% of the adjusted gross income of the individual," he said, adding the local administration limits the exemption to 50% of the year's tax bill. Carroll said approximately 20 Acton residents apply annually and the town distributed about $42,000 under the circuit-breaker last year "and the average person receives about $2,000 per applicant." He noted that local outreach helps many seniors complete the required state CB-1 tax form.

On the new Chapter 59 option

Carroll described the post-2024 statutory provision (Chapter 59, Section 5.0) as a flexible tool that allows a municipality to grant a property-tax exemption to owners who commit qualifying square footage or units to long-term rental at rates aligned with HUD affordability guidelines and income limits (not to exceed 200% of area median income under the statute as presented). He explained localities may design the exemption's structure (percent-of-tax, per-unit amount, or prorated by qualifying square footage).

"There is a limit on the exemption amount," Carroll said, illustrating the local proration rule: "If you have a $10,000 tax bill and a 1,000-square-foot home, if you rent 500 square feet of that thousand, your exemption can only be $5,000." He cited Harwich as one municipality the state Department of Local Services identified as having implemented a local program under the new authority.

Board questions and implementation issues

Jim (Select Board member) asked how tenant eligibility would be verified. Carroll said the assessor's office typically requires the tenant's income documentation and the lease and that "potentially a hurdle" is the requirement to present income-tax returns for the tenant (CB-1 or other returns) in many income-restricted applications. He said there may be some flexibility because the exemption is claimed based on the property owner's request and the statute is new.

David (Select Board member) asked whether local adoption requires town meeting. Carroll replied plainly: "It would need to pass a town meeting." He added that how the town implements the program'as a bylaw or by administrative policy'is flexible and would be a local decision.

Alicia (Select Board member) and others raised operational concerns: timing and annual re-verification if tenants change; potential unintended consequences if landlords shift rents on other units to recoup benefits; and safeguards against landlords capturing the full value of the tax break without passing benefits to tenants. Carroll acknowledged these are implementation choices for the town to study and for the assessors and regional housing staff to analyze.

Next steps

Carroll said he will discuss the option with the Board of Assessors, consult the Regional Housing Services Office for affordability data and recommend a town-level study to analyze the financial and practical effects. If the Select Board and assessors determine the tool could help meet Acton's goals, the next formal step would be presentation of a draft bylaw or policy for town meeting consideration.

Carroll closed by urging caution and careful design: "If we institute it and it financially doesn't make sense for anyone to use it, like, they won't be used."