More Sales Taxes Coming to Maine?? (taxi, income, authority)

[Spanky25]

Originally Posted by forest beekeeper

I wish you luck in finding a perfect vacation home in Maine.



I hope you stay active on this forum, and after you do find your vacation home, post and tell us how you find property taxes compare between L.I. and Maine.

$7-10K /year for a 3BR home sounds rather high to me. I trust that you do know folks paying $12K+ /year.

I bet you find property taxes to be lower here, unless you buy along the coast, or near Portland.

Forest:
Thank you! I been visiting Maine for years. I finally found the spot (by accident while driving around).
It's in Boothbay Harbor Sprucwold Development. I am just waiting for listings to come out. I am already dealing with a very nice R.E. agent.

This could take 3weeks, 3 months or 3 years. We shall see.

[Coaster]

Originally Posted by warpedg

No offense to tourists or people that own SECOND/VACATION homes here but doesnt it seem that the state should just tax the crap out of those people. It seems like a no brainer. I know personally I will never be able to afford a second/vacation home and obviously those people have the money to throw around.

The state can't tax vacation homes at a higher rate than primary residences because it would be unconstitutional. Believe me, it's been proposed several times in the legislature in my personal memory and it has always failed because of that issue.

Some parts of Canada, OTOH, have no problem with it last time I checked. Anyone who owns a vacation home on PEI, for example, pays a substantially higher real estate tax rate than "six months and a day" residents.

[Spanky25]

Originally Posted by Coaster

The state can't tax vacation homes at a higher rate than primary residences because it would be unconstitutional. Believe me, it's been proposed several times in the legislature in my personal memory and it has always failed because of that issue.

Some parts of Canada, OTOH, have no problem with it last time I checked. Anyone who owns a vacation home on PEI, for example, pays a substantially higher real estate tax rate than "six months and a day" residents.

The only thing I can see them doing is no more mtg. & tax deductions for vaca homes. As a matter of fact, they been tring to do that with primary residence. I guess there waiting for the housing market to get better. Otherwise, it would tank another 30%

[Coaster]

Originally Posted by Spanky25

The only thing I can see them doing is no more mtg. & tax deductions for vaca homes. As a matter of fact, they been tring to do that with primary residence. I guess there waiting for the housing market to get better. Otherwise, it would tank another 30%

I'm willing to be corrected on this, but I was under the impression that the IRS no longer allows mortgage interest on vacation homes to be deducted. Don't know about r.e. taxes.

[Spanky25]

Originally Posted by Coaster

I'm willing to be corrected on this, but I was under the impression that the IRS no longer allows mortgage interest on vacation homes to be deducted. Don't know about r.e. taxes.

That was the first question I asked my R.E. Agent in Maine. She said yes.

[mensaguy]

Originally Posted by Coaster

I'm willing to be corrected on this, but I was under the impression that the IRS no longer allows mortgage interest on vacation homes to be deducted. Don't know about r.e. taxes.

Originally Posted by Spanky25

That was the first question I asked my R.E. Agent in Maine. She said yes.

A second home is still eligible for the mortgage interest deduction. You'd have to ask a politician about a third. (I don't know anybody else that has third & fourth homes.)

[flycessna]

Originally Posted by Coaster

The state can't tax vacation homes at a higher rate than primary residences because it would be unconstitutional. Believe me, it's been proposed several times in the legislature in my personal memory and it has always failed because of that issue.

Some parts of Canada, OTOH, have no problem with it last time I checked. Anyone who owns a vacation home on PEI, for example, pays a substantially higher real estate tax rate than "six months and a day" residents.

When towns exact a property tax on a home or any property (accept exempt "non for profit" ) the mill rate is set at one rate for everyone... however there are ways around this.. currently the law allows municipalities to have up to "I believe" a 10% difference in the assessed valuation between residential and commercial properties..

Dont get me started on the warped process of valuations but suffice to say that this means commercial properties could be paying more in property taxes...

Also when looking at second homes (even though Maine has a very weak home exemption) those owners are not allowed to claim any home exemption.. vs full time residents..

And FYI... about the non for profit thing... In lewiston if the city was able to tax them (remember these are the hospitals with ceo's who earn a half a million dollars ect.. and charge $150 to lysol a room, and the colleges where one of them.. Bates has one of the HIGHEST tuitions in the country) our MIL rate would just about be cut in half... yes... half the tax already being collected!

I am not suprised to hear that there are politicans who are frothing at the mouth to charge certain individuals MORE to increase revenue... as a politician and goverment in general it is so much easier when you can assert your authority on a smaller group... I think I can cleary argue why we need to get rid of exmptions, and all of the redistribution of wealth... it does nothing but create a massive government or hungry Lion as I call it

[mainebrokerman]

well,,,, what is done and what is legal and what is right .... is not always in alignment on this issue

is the second home an investment property?????

can you claim a primary residence 2 years out of five(yrs) on two different homes???????

and when you go to sell a primary residence from a second home, non primary, investment property, what are the tax differences

many folks buy a "second home" then end up renting it- now it's an investment or commercial property???

good questions to ask and know...before you buy/sell

[Spanky25]

Originally Posted by mainebrokerman

well,,,, what is done and what is legal and what is right .... is not always in alignment on this issue

is the second home an investment property?????

can you claim a primary residence 2 years out of five(yrs) on two different homes???????

and when you go to sell a primary residence from a second home, non primary, investment property, what are the tax differences

many folks buy a "second home" then end up renting it- now it's an investment or commercial property???

good questions to ask and know...before you buy/sell

Those are all valid questions for our crazy tax system. I thought about what you exactly just said above.

[slyfox2]

Originally Posted by warpedg

Second of all....you are overlooking one of the reasons property is sky high in Maine. Its because people who have done so well outside of Maine come here and buy homes at expensive prices. Therefore the people who live here year round can't afford the property value increases because of those sales. Which means those homes that have been in families for generations have to be sold due to increases in property taxes. All because someone wants a nice little cottage on the coast of Maine that they can brag about owning. But does that matter to someone who wants that 'summer cottage'...of course not. To them its just a bargain.

Property prices are not sky high in Maine. The only people who believe this are people who have never lived elsewhere. Even property in "expensive places" like Mount Desert Island, is cheaper than property in much of New Jersey. Just get on HGTV and learn what things cost in other places.

The problem is that income is often less than other places.

I'm not sure what the solution is since we live in a place where people can move where ever they want. I suppose that Maine could secede from the USA and then become a third world country.

But if Maine wants to grow, and get income higher, then more people from out of Maine must move here, and spread their money around. This could be pension and investment income from wealthier places, or whatever. If the population remains at 1.4 million, less that the population of just Philadelphia, then things will never really get better. Industries will raise the standard of living, but then you can't keep the quaint ways, things will change. I know that people want better incomes without having anything change. THIS IS IMPOSSIBLE.