RTE - Residential Tax Exemption
RTE: 1979 state law that lets towns give year-round residents a tax break
What is the Chatham RTE?
Specifically in Chatham, it's a 35% exemption based on the average home value ($1,642,816).
That's $2,495 off your tax bill if you live here year-round.
Homes valued over $3.7M see a tax increase instead.
Two identical homes, two different tax bills
Part-time residents see an 18% tax increase.
They already pay 66% of Chatham's taxes.
And they can't vote on this.
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Everyone gets the same $2,495.
High earner or struggling senior—no difference.
That's not relief. That's waste
The RTE was established in 1979 to help cities like Cambridge and Boston
shift property taxes away from owner-occupied homes to large property owners and apartment buildings.
Means-tested programs already exist
Bedford, Ashland, Wayland, Holliston, Southborough.
Bigger benefits. Lower cost. Proven results
Bedford's results: 486 seniors qualify
Each gets $2,100-$2,500
Total cost: $750K vs. Chatham's $5.4M.
And Chatham must fund millions in RTE reserve accounts.
(Note: Chatham has a Circuit Breaker presently —up to $2,820/year)
Recommendation: Form a task force
Evaluate a targeted, means-tested exemption for residents with real financial need
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