Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
'Look no further than Connecticut, which currently stands on the cusp of enacting a first-in-the-nation statewide property tax.'
[...]
'While the first year of this tax is expected to raise $73.5 million, a small fraction of that state’s $22 billion budget, Connecticut has opened the door for a statewide property tax that has no upper limit. It offers a “new” tax revenue source for states like New Jersey that have failed to address their structural deficits and continue to live beyond their means.'
[...]
'Our sales tax, created in 1966, has more than doubled from 3% to the current 6.625%.
Our state enacted a personal income tax in 1976 to support public schools and provide property tax relief. The tax began with a simple two-rate structure consisting of a 2.0% rate on income below $20,000 and a 2.5% rate on income above $20,000. In 45 years, 8 brackets have been introduced without any substantive update to account for inflation, making this more burdensome over time. The only meaningful change has been to establish a new top rate of 10.75%, the 3rd highest in the nation. All the while property taxes grow each year such that New Jersey holds the ignoble rank of burdening its homeowners with the highest-in-the-nation property taxes of over $9,000 annually. '
The next time you think how great it would be to create a New Hampshire income tax so you can get some property tax relief, think about this.
6.625% sales tax, 10.75% income tax, and $9k annual property tax - this is what you have to look forward to if New Hampshire caves in to the siren song of creating "new" taxes to lower property tax.
Connecticut is even more of a cautionary tale than New Jersey (and it was mentioned at the top of the cite).
CT had NO income tax until the 1990s, when a bipartisan group promoted it and got it passed. The income tax was promised to be the "final tax increase" for Connecticut. However, it did not come with any caps on the property taxes, which on a 700k house (when I moved to Florida) totaled 19,000 annually. Almost 3% of the value! This was a nice house in the Hartford suburbs, but by no means one of the grand estates down in Fairfield County. When the income tax started, the property rate was closer to 1% of value in annual tax.
Sales taxes are creeping higher also. Some towns approaching 10%.
It never ends.
New Hampshire must firmly reject the tax-and-spend ogres for the sake of their society.
Connecticut is even more of a cautionary tale than New Jersey (and it was mentioned at the top of the cite).
CT had NO income tax until the 1990s, when a bipartisan group promoted it and got it passed. The income tax was promised to be the "final tax increase" for Connecticut. However, it did not come with any caps on the property taxes, which on a 700k house (when I moved to Florida) totaled 19,000 annually. Almost 3% of the value! This was a nice house in the Hartford suburbs, but by no means one of the grand estates down in Fairfield County. When the income tax started, the property rate was closer to 1% of value in annual tax.
Sales taxes are creeping higher also. Some towns approaching 10%.
It never ends.
New Hampshire must firmly reject the tax-and-spend ogres for the sake of their society.
I add the same cautionary tale. Don't do it! Once the structure gets put in place it continues to expand. CT now even has a "convenience tax" that taxes you once you move out of CT and become a resident of a state of NH (passed in 2019 only 4 or 5 states in US with this scheme). Even if you work fully remotely and never step in the state again you still pay the full tax since it is for "your convenience" that you choose to live elsewhere. They also tax the capital gains on property you owned and sold in another state. Add in the high property taxes, a 6.35% sales tax (7.35% for restaurants due to COVID) and property taxes on motor vehicles along with high registration fees and many people are likely paying 12 to 15% of their income in state taxes alone.
Most tax calculators fail to capture the true differences since they don't include purchases subject to sales tax, average property taxes, or high fees (registration, user, licensing, state gas taxes, etc.).
Some areas in NH have high property taxes but it is relative. Many are still significantly less than CT pays on both the house and cars. NH restaurants are higher (9% vs 7.35%) and dividends and interest is capped at 5% in NH versus taxed at income rates in CT. CT taxes all income including capital gains. This is why people are bailing out. If the federal capital gains rate increases it will accelerate the exodus.
How many people think their local property tax rates are going to drop because of the marked increase in home values over the past 18 months? Not me. The next time assessments are done, taxes are going to go up and towns will use the extra revenue to offset any COVID-related deficits, pay for infrastructure and improvements demanded by new residents, and anything that's on their wish lists. If the influx of out-of-staters continues, our tax burden is going to increase even without an added income or sales tax.
As noted above, instituting a new tax base will not lower anything in the long run.
I lived in CT most of my life and was so glad to leave the politics, terrible roads and never ending taxes. I hope all who come here always remember why they left states like that in the first place.
Just showing up at the deliberative sessions and the polls a few times a year is insufficient.
Quote:
Originally Posted by KCZ
How many people think their local property tax rates are going to drop because of the marked increase in home values over the past 18 months? Not me.
Nothing is going to change until the next revaluation -- not your home's assessed value, not your tax rate. By law, at that time, the tax rate would be required to go down if the total valuation goes up, unless you and your fellow local residents voted in additional spending.
My town reduced the tax rate by 4% in part as a result of the most recent reassessment cycle.
Quote:
Originally Posted by KCZ
The next time assessments are done, taxes are going to go up and towns will use the extra revenue to offset any COVID-related deficits, pay for infrastructure and improvements demanded by new residents, and anything that's on their wish lists.
What kind of messed up town do you live in where the taxes go up without the residents voting on it?
In my S.NH town we have been able to hold the line on the actual tax bills (not just the rate) through taxpayer activism and constant vigilance. Just showing up at the deliberative sessions and the polls a few times a year is insufficient.
make current use property owners pay their fair share and you will see everyone else's taxes go down. it is not uncommon to see a property in current use that has a fair market value of $60k, with a yearly tax bill under $40.00. A similar property valued outside of current use pays close to $1400-$1600. If the intent is to reduce development - put property into a conservation easement. As it stands now, current use is nothing more than a tax avoidance scheme for the rich and well connected. Properties that actually are used for farming should get a tax break - and "tree farming" is a joke.
In my town - we pay an additional $4.95 on our tax rate to support property in current use. Unfair to other taxpayers is an understatement.
Empty land in current use consumes almost zero town services, so wouldn't the fair share be.... zero?
Quote:
Originally Posted by illtaketwoplease
make current use property owners pay their fair share and you will see everyone else's taxes go down. it is not uncommon to see a property in current use that has a fair market value of $60k, with a yearly tax bill under $40.00. A similar property valued outside of current use pays close to $1400-$1600. If the intent is to reduce development - put property into a conservation easement. As it stands now, current use is nothing more than a tax avoidance scheme for the rich and well connected. Properties that actually are used for farming should get a tax break - and "tree farming" is a joke.
In my town - we pay an additional $4.95 on our tax rate to support property in current use. Unfair to other taxpayers is an understatement.
What is "Fair share" in this context?
Shouldn't high-density apartment dwellers with multiple kids be paying their "fair share" of the town services they use, particularly the most expensive tax sink, the line item which is often as much as 75% of the total tax bill?
Nothing is going to change until the next revaluation -- not your home's assessed value, not your tax rate. By law, at that time, the tax rate would be required to go down if the total valuation goes up, unless you and your fellow local residents voted in additional spending.
My town reduced the tax rate by 4% in part as a result of the most recent reassessment cycle.
What kind of messed up town do you live in where the taxes go up without the residents voting on it?
In my S.NH town we have been able to hold the line on the actual tax bills (not just the rate) through taxpayer activism and constant vigilance. Just showing up at the deliberative sessions and the polls a few times a year is insufficient.
I live in a town where the school taxes are among the highest in the state. My town controls very little of that because it's a regional school system.
A huge amount of recreational land in the state is owned by private citizens and is in current use. With a conservation easement, you're essentially giving away any and all current/future rights to the land for you and your heirs.
Current use helps keep the state rural while still allowing the owner some flexibility on his/her land.
If you want to see the "unfair" side of current use, see that it requires 10 acres outside of the developed portion. There should not be a minimum.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just showing up at the deliberative sessions and the polls a few times a year is insufficient.
Empty land in current use consumes almost zero town services, so wouldn't the fair share be.... zero?
