Palmer Select Board Adopts Six Tax Exemption Reforms, Approves Room Occupancy Tax

PALMER — October 23, 2025 — Palmer Select Board overhauled its senior and veteran tax exemption program and adopted a new room tax in a busy October 23 meeting. The board unanimously approved six resolutions restructuring exemptions under MGL Chapter 59, raising the Clause 41C income limit for single seniors from $14,814 to $20,580 and for married seniors from $17,093 to $30,870, and boosting asset limits to the state-maximum $40,000 and $55,000 respectively, based on a summer study of 14 peer communities by Principal Assessor Rachel Carney, who estimated the changes will cost approximately $55,000 drawn from the overlay account. The board also rescinded two prior votes that had inflated the smaller Clause 17D exemption to levels higher than nearly every other Massachusetts city or town, and adopted the Heroes Act's Section 5C-and-a-half local option to phase veteran exemptions up 25 percent per year over four years. In a 4-1 vote, the board approved a 6 percent local room occupancy excise on hotels, motels, and short-term rentals effective January 1, 2026, over the objection of one member who called it "highway robbery"; the Division of Local Services estimates the tax will generate at least $14,000 annually. The board also agreed by consensus to formally invite all four fire district prudential committees to a joint public meeting, tentatively November 13 or November 20, to address the unresolved question of who pays for the ambulance service currently operated solely by Palmer Fire District One.