Foster lowers homestead exemption from 25% to 23% for upcoming tax roll
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Summary
The council voted to adjust the town’s homestead exemption from 25% to 23%, effective for the tax roll based on assessed values as of Dec. 31, 2024; town staff said maintaining 25% with new applications would have increased the tax burden by about $170,000.
At its April 24 meeting the Foster Town Council voted to reduce the homestead exemption from 25% to 23% for the tax roll based on assessed values as of Dec. 31, 2024.
Town staff reported that maintaining a 25% exemption combined with an estimated 52–55 new homestead applications would have cost the town about $170,000 in lost tax revenue; the council said the change to 23% is intended to limit a single-year spike in the tax rate and to phase toward a level the speaker said the state may be moving to (20%). Council members said qualifying residents will not need to reapply immediately and that new residents receive a welcome packet with the homestead application included.
Council members clarified the effective date for the change: it will apply to the tax roll using assessed values as of Dec. 31, 2024, and will be effective July 1 for the municipal tax roll process. The council indicated it does not plan to recertify all applicants annually; recertification would only be expected after a significant change and staff said they will monitor applications going forward.
A motion to adjust the homestead exemption to 23% for the 2024 tax roll (affecting the 2025 tax roll collection process) passed by voice vote. The council noted the state-required disclosure in the Valley Breeze used the 23% figure for its advertised financial meeting numbers.
