Falmouth board votes to pursue 10% residential tax exemption for FY28

The Falmouth Select Board voted March 9 to pursue adoption of a 10% residential tax exemption to take effect in fiscal 2028, after a presentation by Director of Finance Laura Citroen and a lengthy discussion about eligibility, administration and likely effects on taxpayers.

Citroen told the board the exemption is an option allowed by state law that reduces a property’s assessed value by a percentage of the town’s average residential assessed value. "What is a residential tax exemption? Well, it's an option that's allowed under state law," she said, and walked the board through illustrative scenarios showing how different exemption rates would shift tax burdens.

Using Falmouth’s 2025 assessed valuations, Citroen and staff modeled a 10% exemption (roughly $95,300 of the town’s average assessed value in their example) and showed the program would be revenue‑neutral if implemented before the town sets its tax rate. Staff estimated about 52% of residential class‑one properties would be eligible for the exemption under their methodology, and they identified a break‑even assessed value around $1.98 million at the 10% level—properties below that point would see lower annual bills, those above it would see modest increases.

The board pressed staff on logistics: applicants must file and provide proof of domicile (tax returns), and the assessing office intends to allow online filings with redaction guidance for sensitive income data. Director of Assessing Melissa M. said files would be placed into a secure document system for auditing, and that applicants could still request abatements within a 90‑day statutory window if they miss the initial filing period.

Citroen noted start‑up costs have been budgeted in the FY27 warrant — including programming changes and a four‑month administrative clerk to run outreach and the first round of applications — and said ongoing clerical support would likely be needed.

Select Board member Reed moved to pursue a 10% exemption for FY28; his motion was seconded and approved by the board. The vote moves the policy into staff planning and public‑notice stages; the board did not set a final rate or adopt implementing regulations on March 9. Town staff will return with implementation details, outreach plans and budget implications for future board action and for placement on the town meeting warrant if required.

What’s next: staff will prepare administrative procedures, an application timeline and cost estimates for the board before any final vote. The program, if adopted, would require property owners to apply and could be adjusted in later years within the limits the statute allows.