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It's not twisting to compare tax burdens as a percentage of income. It's offering a level playing field across all states. But if you want to talk about absolute numbers, we can do that, too. According to:
... This money available to the home owner because they are "property rich" is only available when it is sold. Can't do that if you want to keep the family home in the family. ... In my case nothing was inherited, I have worked for every piece of property I own. ... Yes, change is inevitable and not all of it is bad.
I missed something.
It only hurts those who have inherited 'family homes', yet you have not inherited a 'family home', so it does not hurt you right?
It only hurts those who have inherited 'family homes', yet you have not inherited a 'family home', so it does not hurt you right?
?
This is a partial reply you have quoted in response to a post that stated the poster did not feel sorry for native mainers who inherited homes and now face increased taxes . It left the impression that I had also inherited my property, I was just was clearing up any doubt that iIdid not fall into that catagory. Some of us stayed in the state of Maine and managed to acquire property. If you recall I posted a long rant about my camp taxes , to which you replied.... wow.
Let's clear up one more thing... I love the state of Maine all it's independent good hearted people, crime free living, slow pace, no traffic, no gangs, open spaces, snow hanging off the trees. If all I have to complain about is taxes and a poor economy, oh and...a few rude transplants (present company excluded) that's not so bad. If it was not worth being here, I would have left 30 years ago. Yup I love this state.
For one thing I am the individual who is: "comparing tax burdens as a percentage of income."
Income taxes for example ARE a percentage of your taxable income.
Thank you proving the point that Maine's taxes are not the highest.
I'm not sure what your point was (or is). The topic of my post was the tax burden of Maine versus New Hampshire. You're the one who was complaining about twisting numbers. No one is arguing that Maine's tax burden in absolute numbers is highest -- only as a percentage of average per capita income does it win that award.
The Brookings report is the only such study to have been completed after reviewing the entire state and all its facets. There have been studies upon studies over the past thirty years, but they have address only individual segments and their result has been limited at best, and implemented only with an eye to specific political goals. The Brookings Institution study offers a broad view of Maine's future.
If someone owns a business and faces real estate taxes on the business, those taxes are deductible expenses off the top of income. Taxes on the real property assets of a business are a cost of doing business.
If someone owns a summer home or camp the taxes are not deductible. But owning a summer home or camp isn't a basic necessity of life. If the real estate taxes on such luxuries are a burden, then that is the price that must be paid to have such items. The property that I live on I inherited. I tore down the old cottage and built a new home here on the water. Now with the real estate taxes soaring to amazing heights, I feel that I cannot plan adequately into the future to live my life out here, and pass it along to my children. Times have changed, and while in the strictest sense of the word, I am not being forced off of my family land by taxes, the taxes have reached a point where the value of "family land" for its own sake, has reached a point of diminishing return.
We have become a far more mobile society than back when families were born, raised, and had families of their own all within a few miles of their birthplace. While it may be too bad that people have become "land poor" and may have to make unpleasant choices, I am not at all sure that market conditions should be artificially manipulated to accomodate the relatively few people who can financially benefit from the windfall appreciated value of their inherited real property.
In this sesson, the Maine legislature will probably enact some form of real property tax relief for long term holders of property who are unable to afford to continue to hold their property. While this might end up being a good thing for some...elderly people for instance...if the relief is not true relief but a manipulation of the tax structure for political reasons, then the future generation will not only not benefit, but will be punished for their elders' desire to "preserve the family lands".
The Brookings report is the only such study to have been completed after reviewing the entire state and all its facets. There have been studies upon studies over the past thirty years, but they have address only individual segments and their result has been limited at best, and implemented only with an eye to specific political goals. The Brookings Institution study offers a broad view of Maine's future.
If someone owns a business and faces real estate taxes on the business, those taxes are deductible expenses off the top of income. Taxes on the real property assets of a business are a cost of doing business.
If someone owns a summer home or camp the taxes are not deductible. But owning a summer home or camp isn't a basic necessity of life. If the real estate taxes on such luxuries are a burden, then that is the price that must be paid to have such items. The property that I live on I inherited. I tore down the old cottage and built a new home here on the water. Now with the real estate taxes soaring to amazing heights, I feel that I cannot plan adequately into the future to live my life out here, and pass it along to my children. Times have changed, and while in the strictest sense of the word, I am not being forced off of my family land by taxes, the taxes have reached a point where the value of "family land" for its own sake, has reached a point of diminishing return.
We have become a far more mobile society than back when families were born, raised, and had families of their own all within a few miles of their birthplace. While it may be too bad that people have become "land poor" and may have to make unpleasant choices, I am not at all sure that market conditions should be artificially manipulated to accomodate the relatively few people who can financially benefit from the windfall appreciated value of their inherited real property.
In this sesson, the Maine legislature will probably enact some form of real property tax relief for long term holders of property who are unable to afford to continue to hold their property. While this might end up being a good thing for some...elderly people for instance...if the relief is not true relief but a manipulation of the tax structure for political reasons, then the future generation will not only not benefit, but will be punished for their elders' desire to "preserve the family lands".
I know my camp isn't a necessity, and all the deductions I'm allowed. These are mearly examples of why some native Maine people resent the the influx of "people from away" buying Maine property for in thier own words "cheap". Native Mainers may someday be priced out the State. Do I think any thing should be done about it? Hell no. There is too much government interference already. But it is understandle if during the next 10 to 20 years as things in Maine change, there is more resentment from the have not's.
Personally I'm counting on selling my properties in about 15 years and retiring, that lakefront should be expensive enough by then that I can retire.
One thing to consider when considering moving to Maine is that taxes over all are very high. We didn't think about this before moving there. They really catch you coming and going here. You have to pay the normal things, but they add on extra fees and taxes in places I don't always expect. We moved here from Massachusetts. In MA if you declare your home as a homestead, you receive a discount on your property tax. If you rent in MA you get a credit when you file your state tax forms. I now know that Massachusetts protects it's population in a lot of ways and there you are not hurt by being middle class. In Maine, there is an extremely large population of very poor people that don't work at all, or work in less that subsistance level jobs. Maine considers it everyone else's responsiblity to pay for these folks to live. If you make under a certain amount you can apply for a matched savings account through your county Community Action Plan, you can get your county to pay for your car repairs, you can get them to pay for your daycare fees, your doctors bills, heat, rent, etc. It's really quite profitable to be irresponsible or very poor in this state. My husband and I were middle class when we moved here and bought a home, but they tax you coming and going. Not only do you have to pay income tax, property tax which is higher than MA, sales tax in varying degrees on everything, but you have multiple fees for your home, car, etc that pile on. If you want a decent paying job in the computer industry, you have to find one in NH because there aren't any in Maine. In addition to this Maine addw on an additional tax fairly high tax to your income tax just in case you purchased things in NH. It doesn't matter whether you shop in NH or in your local town...and it doesn't matter that the money wasn't spent inside Maine, you have to pay this additional tax. I sometimes feel like I am living in a British state instead of the United States of America.
... In addition to this Maine addw on an additional tax fairly high tax to your income tax just in case you purchased things in NH. It doesn't matter whether you shop in NH or in your local town...and it doesn't matter that the money wasn't spent inside Maine, you have to pay this additional tax. I sometimes feel like I am living in a British state instead of the United States of America.
Beekeeper, she's referring to the use tax, which Mainers are supposed to pay on items they buy outside the state. It's specifically aimed at Mainers who buy big-ticket items in sales-tax-free New Hampshire, such as appliances and electronic gear, but applies to everyone and everything. The state says we are supposed to pay Maine sales tax on anything bought outside Maine and brought back to the state. We've received two noticee in the mail in the past six months from Maine Revenue Services with forms that we're supposed to fill out listing everything we've bought out of state for the last five years. As part of the "amnesty" we only have to pay tax on three years worth of purchases IIRC.
Since we don't shop outside Maine, they got recycled. As for the rest:
Quote:
If you make under a certain amount you can apply for a matched savings account through your county Community Action Plan, you can get your county to pay for your car repairs, you can get them to pay for your daycare fees, your doctors bills, heat, rent, etc.
I've never heard of a "matched savings account" or a "county Community Action Plan." There are local community action agencies that operate various aid programs and Head Start, but they aren't run by county governments. Counties in Maine don't pay any welfare costs, so I have no idea what she's talking about on the other stuff.
Beekeeper, she's referring to the use tax, which Mainers are supposed to pay on items they buy outside the state. It's specifically aimed at Mainers who buy big-ticket items in sales-tax-free New Hampshire, such as appliances and electronic gear, but applies to everyone and everything. The state says we are supposed to pay Maine sales tax on anything bought outside Maine and brought back to the state. We've received two noticee in the mail in the past six months from Maine Revenue Services with forms that we're supposed to fill out listing everything we've bought out of state for the last five years. As part of the "amnesty" we only have to pay tax on three years worth of purchases IIRC.
Since we don't shop outside Maine, they got recycled.
Thank you.
We moved to Maine in 2005, and have not traveled out of state other than for vacation trips. I guess this would be a much bigger issue for folks living very near NH or Mass.
I was not familiar with the 'use' tax. Thanks.
Quote:
... I've never heard of a "matched savings account" or a "county Community Action Plan." There are local community action agencies that operate various aid programs and Head Start, but they aren't run by county governments. Counties in Maine don't pay any welfare costs, so I have no idea what she's talking about on the other stuff.
I keep hearing about the welfare mentality in Maine, though so far I have not met anyone on welfare.
We did have a neighbor lady who was getting WIC for her child and attending college on some program to be a social worker.
Otherwise I am not really familiar with those things either.
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property and taxes
Taxes are very high
