Falmouth town meeting greenlights tax exemption for year‑round rentals and adopts short‑term rental rules

At a recent town meeting, Falmouth voters approved local steps tied to a new state statute intended to encourage year‑round rentals and also adopted a short‑term rental (STR) bylaw focused on registration and complaint response.

Select Board Chair Bob Moskowi said the statute allows a municipality to offer an annual tax exemption—up to 100% of a property’s tax value as described at town meeting—for homeowners who rent year‑round to families meeting an income threshold the meeting cited as an AMI of up to $200,000. Moskowi said the exemption is another “tool in the toolbox” and that the Select Board was authorized to set program parameters including how many exemptions are permitted and whether the exemption is partial or full.

Moskowi and Town Manager Mike Crenshaw said the town will focus on preserving year‑round housing without clear‑cutting or new construction, and Moskowi said the program could be used to prioritize municipal and public‑service employees for local workforce housing if the town decides to do so.

On short‑term rentals, Crenshaw said the bylaw moves the town from restriction toward regulation: units must register and post a responsible on‑site or designated contact who can be reached by police or neighbors for complaints. “One of the most significant [provisions]… is the element concerning the local municipal workforce housing and the required local contact to address complaints,” Crenshaw said, emphasizing noise, parking and trash concerns and the goal of preserving tourism revenue.

The measures will require follow‑up administrative work by town staff to define eligibility, caps and enforcement procedures and any zoning changes tied to the seasonal community designation will go through the Planning Board and later return to town meeting for approval.