Tisbury Eyes Added Revenue From Rental Registrations

Tisbury could reap hundreds of thousands of dollars a year from short-term rental property registrations that became mandatory when the state passed its short-term rental tax last year.

The town of Tisbury could reap hundreds of thousands of dollars a year from short-term rental property registrations that became mandatory when the state passed its short-term rental tax last year.

“That’s above and beyond the six per cent [short-term room tax],” fire chief John Schilling, who chairs the town’s short-term rental task force, told the Tisbury selectmen during their regular weekly meeting Tuesday at the Katharine Cornell Theatre.

Selectmen accepted Mr. Schilling’s recommendation to issue a request for proposals from third-party compliance firms to ensure that all short-term rentals are properly registered with the town.

“We don’t have the resources to do that,” Mr. Schilling said. “That would require a full-time person. It’s much more effective to hire an outside firm.”

Compliance companies have already been soliciting business from Island towns, with two such firms recently pitching Tisbury, Mr. Schilling said.

“They were estimating in excess of $300,000 annually in registration fees alone,” he said.

The task force is not limiting its work to short-term rentals, he added, but will also press for compliance and accountability from longer-term vacation rentals as well.

“I think you will find all of us are in favor of both lines of effort,” selectman and board chairman Melinda Loberg said. The board voted to authorize Mr. Schilling to work with town administrator John (Jay) Grande to issue the RFP from compliance firms.

In their state-mandated annual tax rate classification hearing, also held Tuesday, selectmen set the town’s millage rate — the amount of tax per $1,000 of assessed property value — at $9.33 for fiscal year 2020, down from $9.79 in 2019.

Selectmen voted not to shift any additional tax burden to local businesses, and to keep the town’s residential exemption for 1,036 year-round homeowners.

Annual taxes on a property valued at the Tisbury median of $621,400, owned by a seasonal resident, would increase from $5,425 to $5,798.

The same property, if owned by a year-round resident granted the exemption, would be valued at $455,011 and taxed $5,245.

Tisbury is one of 14 Massachusetts cities and towns, and the only one on Martha’s Vineyard, with a residential exemption for property taxes. Others include Barnstable, Nantucket and Provincetown in the Cape and Islands area, as well as Boston, Cambridge and several neighboring communities.

Alternate members of town-appointed boards and committees in town will have voting rights in the absence of full-time members, following a vote by the selectmen, who then appointed Roger Moffat as a full-time member of the town’s natural resources committee and Laura Rose as an alternate.

Also Tuesday, selectmen heard a report on the town’s wastewater treatment facility by consultant Mark White, a principal in the Quincy-based civil engineering firm Environmental Partners, and with finance director Jon Snyder, began looking at numbers for the 2021 capital budget process.

Friday morning at 8:30, the board meets jointly with the town school committee to hear about the school building committee’s work to select an architect.

Dec. 3, selectmen hold a public hearing on one-day liquor licenses, followed Dec. 4 by a regular business meeting at 4 p.m.

Comments

Submitted by Anonymous (not verified) on Wed, 11/20/2019 - 15:52

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Mark Edgartown

Can we please think of some more proposals to negatively impact the Summer economy? Maybe a 50% surtax on SSA fares from May through September. Let's get creative with our taxing to raise meaningless sums of money while not looking at the expense side of the equation.

T Bone Oak Bluffs

Do you think teachers, firemen, police officers, and librarians work for free? Would you like your street plowed? Have an ambulance come to your home? Have street lights? Tisbury is the 28th lowest town out of 351 towns in Massachusetts on tax rates. The taxpayers in Tisbury are delirious to think they are over taxed. https://patch.com/massachusetts/boston/ma-residential-property-tax-rate…

Submitted by Anonymous (not verified) on Thu, 11/21/2019 - 07:44

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TisKid VH

It will help with the increased costs of a new school project that resulted from turning down millions from the state. Just like the committee at the time told us.

Submitted by Anonymous (not verified) on Thu, 11/21/2019 - 08:07

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Diane Edgartown

I guess we will wait and see how this no late fee program plays out. As a child I would have loved this because I would have been guilty of holding on to books pass due, a bit lazy. Rules are not always bad they guide you to behave in a civilized manner. Books have a due date because other people are waiting, It is only human nature to think, oh well I’ll finish the book next week as there is no penalty for being late. Late fees teach responsibility. If you can’t afford the late charges simply return the books when due...

Diane Edgartown

I don’t know if it was my error or the papers. I think they read before publishing. Anyway you get my point on the library. I won’t comment on Tisbury taxes because when looking for a home I choose Edgartown and happy I did because of the tax rate.

Submitted by Anonymous (not verified) on Sun, 11/24/2019 - 20:26

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Curt North Carolina

New Jersey just rescinded this tax as long as you rent through a realtor of in response to a classified ad. After 20 years renting for a month on MV I will now be spending July at the Jersey Shore. Unreal.

Submitted by Anonymous (not verified) on Sun, 11/24/2019 - 21:10

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Thomas Edgartown

Taxing seasonal residents more when they actually use less services? What kind of morons are running this town?

Submitted by Anonymous (not verified) on Sun, 11/24/2019 - 21:13

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Tis the season tisbury

Taxing people who only spend a fraction of time on the island MORE than the year round residents? Socialism is alive and well. God help us!

Submitted by Anonymous (not verified) on Mon, 11/25/2019 - 07:15

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Facts not fiction edg

Here we go again. Stick it to the summer residents who subsidize the year rounders. Any prospective seasonal homeowner should have their head examined if they even consider purchasing a home in a town that views them as a cash cow and dings them extra for the services that they do not use, such as the schools. Come to Edgartown where you are welcomed and appreciated and treated as an equal.

Submitted by Anonymous (not verified) on Fri, 11/29/2019 - 09:56

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Summer92 Tisbury

I worry about the increasing tax burden on both residents and non residents. Tisbury taxes are so high already. Once source of income is renting for weeks in the summer and, if your house is not large and grand and your rental income is not coming from wealthy renters but from regular families coming to enjoy the island for a few weeks, then more rental taxes adds yet again to the rental price (either the or the Tisbury taxpayer owner has to lower the $ that the rental provides them). With the addition of the state tax and with this proposal, people renting in lower cost rentals are getting hurt. Real estate people on island have already said that the state short term rental tax is affecting the market for this, more middle class, segment of the population. Tisbury officials should take a long hard look ate expenses and think about some of the things that the town spends money on - like the expensive, evidently non-functional souped up harbormaster boat that ended up sunken recently, before deciding that they have found another way to take advantage of a way to just add to the coffers. Be careful. Living on this island, one should never forget that the primary industry here is tourism and understand that people have choices so, when Tisbury prices itself out, those tourists may spend their dollars somewhere else on the island, or somewhere else altogether. The selectmen need to be cautious with the budget and think long and hard about how their decisions affect their constituents. Its not an endless well and, for all their talk about the good of the residents, they certainly don't seem to have a real sense of the way that people are dealing with the economics of living in the island town with the highest taxes.

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