Calculate your tax break from the homestead exemption
The Town Council will vote Monday on a homestead tax exemption. The only question is what percentage it will set. Under state law, the exemption can be between 5% and 35%. On a home assessed at $100,000, a 15% exemption reduces the assessment to $85,000. Your taxes are based on the lower assessment. It’s not clear what percentage the council will set. At 20%, the exemption should wipe out any tax increase from revaluation for many homes. It may be enough to allow the town to increase spending by 3% with little tax impact on qualifying homes. But don’t be surprised if the council sets a 35% exemption. That could mean a significant tax cut. It's also possible that the council could start at a lower exemption, say 15%, and increase it year by year. Who qualifies Homes that are owner-occupied qualify. That includes single-family houses, condos and two-family houses where the owner lives in one unit. Rental houses, apartment buildings, and commercial property do not qualify. State law ...
