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