[vter]

A renter pays real estate taxes indirectly...I would assume the landlord would set the rental rate in order to cover taxes.

[arctichomesteader]

Originally Posted by vter

A renter pays real estate taxes indirectly...I would assume the landlord would set the rental rate in order to cover taxes.

Problem is so many renters don't realize that and are too willing to vote for an increase in spending/taxes thinking it doesn't affect them, then get upset when rent goes up. It wouldn't bother me in the least to, at least on property tax issues, only allow property owners to vote for increases.

[Ellwood]

Taxes by State

Not perfect, but helpful site

[flu189]

Originally Posted by arctichomesteader

Problem is so many renters don't realize that and are too willing to vote for an increase in spending/taxes thinking it doesn't affect them, then get upset when rent goes up. It wouldn't bother me in the least to, at least on property tax issues, only allow property owners to vote for increases.

This is the crux of the problem. Folks who either don't directly pay property taxes, make very low incomes and recieve benefits to lower their burden through earned income credits for example, or collect on other programs, have no incentive to vote for or support controls on budgets. The school issue with statewide equalization also provides no incentive to save as it does not directly impact their local district. The problem is that the funds must come from somewhere and by creating and fostering an oppressive level of taxation thwarts growth, and expansion in investment. It's akin to living off of generous credit living a $40 an hour lifestyle while only making $20 and hour. The problem also lies with many folks who see neighbors making a good middle class wage as being perceived as overly well to do and therefore a good target for tapping more funds from. The problem is that on an overall demographic basis Vermont is not laden with upper middle class and wealthy people to the degree that could keep the current cycle afloat.

[NYLIER]

Originally Posted by vter

A renter pays real estate taxes indirectly...I would assume the landlord would set the rental rate in order to cover taxes.

That's a strong assumption vter. Legally, it is the homeowners responsibility to pay the taxes on their home....the tenant is responsible for paying rent.

[vter]

Of course it is the actual homeowner that pays the taxes. My point is that when a landlord factors in what costs he/she needs to cover with rental income, that taxes is one of them. So...when you rent, part of the rent you pay most likely covers the taxes that the landlord has to pay.

[flu189]

Originally Posted by NYLIER

Is there a website that will break down how each state taxes their residents? My neighbor came over yesterday and we were discussing the tax dilemma, especially school taxes. Why is it that someone that rents a house is able to vote for the school budget? The homeowner and the renter get to cast their vote. Should a person that rents a home and doesn't pay taxes on that home have the legal right to vote on a budget that affects the homeowners wallet?
My husband just read an article in the Rutland Herald today. It seems the elected prosecutors and sheriffs who make more than $60,000 a year are taking 5% pay cuts. Are the teachers and those administrators with six figure salaries doing the same?

There are several sites on the topic of taxes offering basic comparisons, too many to list here, but easy enough to search for. The recent blurb on sheriffs and prosecutors making over $60k taking a temporary 5% reduction basically follows what the state management employees are facing also. Don't count on seeing the spillover of cuts and sacifices carrying over into the education sector as they fall into an entirely separate insulated class. It will take legislative action and reworking several Acts to force that hand and I don't think the legislature has the fiber to kick open that hornets nest this year. They will settle on nickel and dime tactics and keep praying for federal bailout style funds. The one thing to watch closely, however, is the requests and proposals to continue raising education budgets. Such requests must be met with the utmost line by line scrutiny by the public and only approved where it is absolutely essential. A sort of Stepford type of haze has prevailed for years where increases were just rubber stamped all with the feeling of it being completely beneficial and necessary. We have collectively spent our way into this situation and now find it very hard to get on a diet and shed the unneeded pounds. Aslo, to really understand tax situations and burdens in other locations it is pretty much necessary to check state taxation sites as well as towns, counties, school districts, etc as different places have different means of levying taxes and fees. It's time consuming, but necessary if you are seriously searching for a place where your economic welfare is at stake. Don't forget to also research such other aspects like DMV licensing and registration fees as they vary considerably. Also beware of states and counties where personal property taxes are levied on your motor vehicles as those rates can be quite high based upon the value of your car(s) and other recreational vehicles if you own them. As far as the original question on Social Security taxes goes just checks the ssa.gov site and you will see as a joint filing couple up to 85% of you SSA payments are subject to income tax when you make $44k per year. Vermont will tax the amount that is taxable under federal amounts. Another good source of information is a knowledgable tax preparer who will give you the straight skinney under whatever your personal situation and numbers dictate.

[flu189]

Originally Posted by NYLIER

That's a strong assumption vter. Legally, it is the homeowners responsibility to pay the taxes on their home....the tenant is responsible for paying rent.

Of course landlords charge rent rates based on market conditions. If I were a landlord I would of course adjust the rents accordingly to cover for increasing taxes and insurance and upkeep costs associated with the property. When costs go up the cost is borne by the consumer.

[NYLIER]

I don't think I expressed myself correctly in my last post. I apologize because I didn't mean to say that you didn't understand the difference between a homeowner and a tenant. That is so far the opposite of what I was trying to say. Let me try this again. Okay, everyone agrees that VT has a serious problem with high education taxes we are paying. Do you think it is right that a homeowner and also a tenant can vote for a school budget based on the same piece of property? If the landlord raises the tenants taxes because the school budget was approved, that tenant can pick up and move elsewhere. Homeowners in that town are left with the financial burden partially put on us by a tenant's vote. I am not trying to get anyone to change their opinion on this subject. I am just trying to make sense of why it is the way it is.

[flu189]

The main issue is to really try and find out a fair and efficient balance to provide revenue to fund necessary and essential state and local functions or services without placing undue and excessive burdens on classes of providers, ie homeowners, business, and wage earners. My argument on the entire issue is that we have created and fed the 800 pound gorilla and now can't manage what we have created with the resources we have. We now have such a large platter of taxes and fees and are desperatly trying to milk every dollar we can while still searching for new areas to glean new taxes and fees from. Eventually you just get to the point where it will be impossible to get that revenue all the while while we see more and more folks and families lining up to recieve assistance in one form or another. It is unfortunate that our monies are spent without regard to the concept that government works for the taxpayer, not the other way around.