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Should Falmouth MA Consider a Second-Home Tax Like Montana?

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Real Estate Agent with https://teamcoker.robertpaul.com 9023635

It's raining money!

Should Falmouth MA Consider a Second-Home Tax Like Montana?(Montana Free Press)

Montana recently passed a law that changes how property taxes work. Starting in 2026, people who live in their homes year-round will pay less in property taxes. On average, they will save about $719 per year. However, owners of second homes and short-term rentals will see their taxes go up by about 68% .(The US Sun, Montana Free Press)

The idea is to help people who live in Montana full-time by making those who own vacation homes pay more. This is because many second-home owners are from out of state and don't pay Montana income taxes. The extra money from these higher taxes will help fund local services like schools and roads .(Montana Free Press)

Falmouth, Massachusetts, with more waterfront than any other town in the United States, and many second homes is on Cape Cod. Some people think that a similar tax could help Falmouth. It could lower taxes for year-round residents and provide more money for local needs.(Montana Free Press)

However, others worry that higher taxes might hurt the local economy. Second-home owners spend money in local shops and restaurants. If taxes go up too much, they might choose to vacation elsewhere.

In 2022, Falmouth's Select Board decided not to adopt a residential tax exemption that would have shifted more tax burden to second-home owners . This shows that the town is cautious about making changes that could affect property owners.(CapeCod.com)

What Do You Think?

Should Falmouth consider a tax on second homes like Montana did? Would it help or hurt our community?  

Please share your thoughts by taking our One Question survey:

Survey - Should Falmouth MA Tax Second Homes Differently?

 

Best, Heath

Posted by

Heath Coker, Associate Broker
Berkshire Hathaway Homeservices Robert Paul Properties
teamcoker.robertpaul.com
508-548-8888  Licensed in MA
Its a beautiful day on Cape Cod!

James Heath Coker | Create Your Badge

Comments(9)

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Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Heath - interesting.  I see more than a few consequences of such an action.  

Carol Williams - a SCS Second Chance Saturday post suggestion to see if a wider audience has an opinion to share.  

May 19, 2025 06:06 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Heath,
I see pros and cons to this scenario.  Raising taxes seems to be every level of governments favorite way to meet their budget requirements. I think a deep evaluation of spending and priorities would be preferred.

May 19, 2025 06:26 AM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

Thank you for the comment, Michael Jacobs, and the SCS recommendation!. This may start to be a trend in areas where funds may no longer be available from past sources. On other social media platforms, the locals have pros and cons for this idea. Some say the non-residents don't use as many services or as much. Others suggest a resident "credit" rather than a non-resident increase. Either way, non-residents would have a different tax.

May 21, 2025 02:36 AM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

Thank you for the comment Carol. We do have some pressing issues that have required some hefty expenditures. Thus, the revenue to fund the solutions are all being discussed.

May 21, 2025 02:38 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Associate Broker Falmouth MA Cape Cod Heath Coker ,

I'm so glad that Michael Jacobs suggest to Carol Williams to feature your post in Saturday Series as I missed it. I'm following you now so will look for your future posts. i too see this type of taxation may start to be a trend in areas where funds may no longer be available from past sources. We all have to take a hard look at expenditures in our cities to make sure our property taxes are not so high we are discouraging our residents from residing there. There are certainly pros and cons to giving a tax exemption to full time residents but sometimes a hard look at the agendas cities are trying to fund need to be scrutinized before that occurs.

May 24, 2025 04:44 AM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning. Florida has homesteaded property tax breaks that have worked well for years for year round residents. There are pros and cons to any tax and you will never satisfy them all. 

May 24, 2025 05:16 AM
Gwen Fowler SC Lakes & Mountains 864-710-4518
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

This is what I am used to. In SC, the primary home is at 4% tax to assessment, 2nd homes are at 6% tax to assessment, 1/3 higher.  You also get deductions for age and disabilities.  Of course our road show how cheap it is to live here so you learn to avoid potholes.  

May 24, 2025 05:53 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 

The power to Tax is the power to destroy.

Taxes should be lowered for everyone.   Reduce the size of Government!

 

May 24, 2025 08:38 AM
Charles Ross - eXp Realty (Salina Group) | Broker
Salina Group - Salina, KS
Love To Help People

Heath Coker, what a thought-provoking question for your community! 🌊 Balancing fairness and sustainability takes courage and clarity—thanks for sparking the conversation. #StayMotivated #CommunityMatters 💬🏡

Jun 07, 2025 02:58 PM