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H 5374

An Act expanding the exemption for residential property in the town of Wellfleet

194th Legislature (2025-2026) Introduced by Hadley Luddy

Wellfleet may grant qualifying residents an exemption up to 35% of the average class one residential parcel value, reducing taxable property accordingly.

Read second and ordered to a third reading
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Bill Summary · H 5374

Summary of Bill H.5374 (194th MA General Court)

Title: An Act expanding the exemption for residential property in the town of Wellfleet

Docket: House No. 5374
Filed: April 9, 2026
Sponsors: Representative Hadley Luddy; Senator Julian Cyr
Current Status: Senate concurred (Action History shows passage by Senate on 2026-04-16; previously referred to the Senate Committee on Revenue)

Purpose (explicit intent)
- To expand the residential property tax exemption available in the town of Wellfleet for class one residential properties.
- The bill allows Wellfleet to grant an exemption of up to 35% of the average assessed value of all class one residential parcels, subject to state law and future adjustments by the General Court.

Key Provisions and Changes

1) Authorization and cap on exemption
- Permits Wellfleet, with the approval of the town Selectboard, to grant an exemption equal to not more than 35% of the average assessed value of all class one residential parcels within Wellfleet.
- The exemption amount can be adjusted to a different maximum percentage if later established by the General Court.
- Exemption applies solely to:
- The taxpayer’s principal residence as used for income tax purposes, or
- A residential parcel occupied year-round by another Wellfleet resident who is that person’s principal residence for income tax purposes.
- The exemption is in addition to any exemptions under Section 5 of Chapter 59, but the taxable valuation after all exemptions cannot be reduced below 10% of its full and fair cash valuation, except as provided by clause eighteenth of Section 5.
- If the exemption is based on tax amount (instead of value), the reduction in taxable valuation is calculated by dividing the tax amount by the town’s residential class tax rate and multiplying by $1,000.
- The term “parcel” includes units defined by Wellfleet’s board of assessors (including condominium units).

2) Eligibility and administration
- Wellfleet may adopt and amend local criteria to determine who qualifies as a resident under this act.
- A taxpayer who believes they were entitled to the exemption but did not receive it may file a written application with Wellfleet’s board of assessors. The application deadline aligns with the deadline for exemptions under Section 59 of Chapter 59.
- Timely applications filed under this act are treated as timely filed under the General Laws.

3) Effective date and applicability
- The act takes effect on the first day of the fiscal year following the act’s passage.
- It applies to taxes levied for fiscal years beginning in the following year and thereafter.

Who is affected

  • Property owners in the town of Wellfleet who qualify as class one residential taxpayers or who occupy a qualifying year-round principal residence (including cases where another Wellfleet resident occupies a parcel as their principal residence).
  • Wellfleet’s board of assessors, which administers the exemption and processes applications.
  • The town’s residents and property taxpayers, due to modifications to exemptions and potential impact on tax bills.

Substantive impact and considerations

  • Tax relief: Introduces a potentially substantial exemption (up to 35% of average class one residential parcel value) for qualifying Wellfleet residents.
  • Local control: Enables Wellfleet to set or adjust eligibility criteria and administer the exemption locally, subject to state law.
  • Fiscal effect: Will reduce taxable valuation for qualifying properties, subject to the statutory floor of 10% of full and fair cash value after exemptions; local funding implications for municipal finances and school aid may follow from changes in abated valuation.
  • Compliance: Requires coordination with General Laws on exemptions and assessment procedures, and establishes a process for appealing eligibility.

Notes

  • The bill explicitly preserves existing exemptions under Chapter 59 while adding this Wellfleet-specific exemption.
  • Final form and any adjustments by the General Court could alter the precise percentage cap or administration details.

Compiled from official sources — confirm details with the bill’s official record.

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