Residential Exemption

PROVINCETOWN RESIDENTIAL EXEMPTION OVERVIEW

Residential Exemption Narrated Video Opens in new window Residential Exemption Narrated Video

In the Town of Provincetown there are two ways in which property may qualify for a Residential Exemption. This exemption is based on the residency status of the taxpayer or, as newly adopted, the residency status of a year-round renter. Residential taxpayers who are domiciled in a community or non-domiciled taxpayers who rent on a year-round basis to qualified renters, receive a reduction to the assessed value of their property and a corresponding reduction in their real estate tax. The exemption amount is based on the average assessed residential value times a percentage voted by the Select Board at the annual Classification hearing not to exceed 35%. The adoption of a Residential Exemption is revenue neutral for the Town. The Provincetown Select Board has adopted the exemption and, for FY' 2023, voted the percentage at 25%. The exemption amount for Fiscal Year (FY 23) is $226,284.

Here is an example of how the exemption works:

Property A with residential exemption

  • Assessed value of $500,000
  • Residential exemption of ($226,284)
  • Taxable Valuation of $273,716
  • Tax rate per thousand of $5.98
  • Property Tax = $1,636.82

Property A no residential exemption

  • Assessed value of $500,000
  • Residential exemption of ($0)
  • Taxable Valuation of $500,000
  • Tax rate per thousand of $5.98
  • Property Tax = $2,990

The Assessor's Office determines the amount of the reduction for qualifying parcels by dividing the total residential valuation by the number of residential parcels. This calculation yields the average assessed residential value. This average value is then multiplied by the exemption percentage, recently voted at 25%. This is the amount to be exempted for each qualifying parcel. The exemption percentage is reviewed and re-voted by the Select Board at the annual Classification Hearing.

If qualified under either version of the exemption, a property's taxable value will be lowered by a fixed amount. The resulting net amount will then have the tax rate applied. Each qualifying parcel receives the same exemption amount with the exception that in no case can the reduction in value result in a tax below ten percent of the original tax. Those properties are adjusted accordingly.

The fall tax bill should be paid as assessed. Qualifying applications received between October 1 and March 1 each year will be handled as a standard exemption with any adjustment due applied to the Spring tax bill. Applications filed between March 1 and April 1 (the application deadline) will not see a reduction in the property tax but will, instead, receive a refund. If you have any questions, please call the Assessors' Office at 508-487-7017 or email Scott Fahle.

IF YOU FEEL YOU MAY QUALIFY FOR A VERSION OF THE RESIDENTIAL EXEMPTION SELECT ONE OF THE APPLICATION OPTIONS BELOW: APPLICATIONS INCLUDE A DETAILED SET OF INSTRUCTIONS THAT WILL HELP YOU COMPLETE THE APPLICATION SUCCESSFULLY.

IF YOU ARE APPLYING FOR THE DOMICILE BASED STANDARD RESIDENTIAL EXEMPTION- CLICK ON RESIDENTIAL EXEMPTION.

IF YOU ARE APPLYING FOR THE NON-DOMICILED RENTING TO A YEAR-ROUND PROVINCETOWN RESIDENT- CLICK ON EXPANDED RESIDENTIAL EXEMPT