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SCITUATE – Scituate may see less annual tax revenue after the state revised what qualifies as “new growth,” the town’s Director of Assessing told the Select Board during its Nov. 18 meeting. The change could have long-term effects on how much the town can raise each year without needing an override.
Director of Assessing Joseph Divito said the Massachusetts Department of Revenue (DOR) has tightened the rules around which home improvements can count as new growth. New growth reflects increases to the tax base from renovations and construction that exceed normal market changes.
Divito told the board that for decades most upgrades that added value to a home were counted Now, according to Divito, that is no longer the case. The state now excludes many common renovation projects from new growth unless they happen simultaneously as part of a larger overhaul.
“New kitchen, new bath, new roof, new siding, new windows. That's not new growth unless it all happens at once,” he said.
He noted that while a kitchen renovation may increase a home’s value by tens of thousands of dollars, it would no longer boost the town’s tax base under the updated interpretation.
Divito said the shift has the potential to “significantly” reduce future revenue for communities like Scituate, where many projects are single-room renovations rather than full home rebuilds. He also told the board he plans to continue coding value increases as new growth.
“I will continue to advocate to at least have a uniform policy and enforcement of growth,” he said.
Despite the looming changes, Scituate registered strong new growth this year, which Divito attributed partly to new subdivisions and recent construction.
“We did come in at $853,000 this year,” he said.
Even so, he warned that upcoming years are likely to reflect the impact of the state’s new rules, which could lead to lower totals.
The board discussed the issue as part of its ongoing review of department budgets for the next fiscal year. Rising costs and state mandates have already strained the town’s financial forecast, and the assessing update added another point of uncertainty heading into 2026.