A letter published in the October 25 edition of The Concord Bridge incorrectly characterizes the findings of a report I authored.
The letter claims that a 2020 Massachusetts Budget and Policy Center report finds that residential tax exemptions (RTE) are “regressive” — in other words that they worsen economic inequality. The report, however, listed RTEs as a tool that can make property taxes more progressive: less regressive. Among homeowners, the RTE increases taxes for owners of more expensive homes and reduces taxes for owners of less expensive homes.
The October 25 letter focused solely on a secondary finding about RTEs in the report, which is that, to the extent that landlords pass higher property taxes onto renters, the burden will be shouldered by people who generally have lower incomes. Although the letter does not mention it, the report notes that some towns address this issue by extending the progressive impact of RTEs to renters. They do this by allowing landlords with full-time renters to also claim the RTE. The policy has the additional effect of encouraging full-time rentals rather than diverting rental stock to short-term Airbnb renters.
Phineas Baxandall, Ph.D.
Franklin Street, Cambridge
Policy Director, Massachusetts Budget & Policy Center
