[arctichomesteader]

The real solution is to eliminate property taxes entirely. Homes should simply not be taxed. All of these self-professed "progressives" running VT yet the state relies on the most regressive of taxes.

[JGBigGreen]

Don't know of any state that doesn't tax homes or property. And wouldn't sales tax be more regressive than property taxes?

Originally Posted by arctichomesteader

The real solution is to eliminate property taxes entirely. Homes should simply not be taxed. All of these self-professed "progressives" running VT yet the state relies on the most regressive of taxes.

[atypicalLIer]

Originally Posted by GeoffD

I know a number of residents in resort towns who rent basement suites to offset some of their housing costs. Most are working a couple of jobs where one doesn’t pay very well but has health insurance with a weekend/holiday-oriented second job that pays a lot better. For someone like that, where do you draw the line? They’re not high income so they’re not paying much of the Act 68 state school tax. Taxing them at the commercial rate would be a hardship. Where do you draw the line?

Are they reporting the rental income received on their basement suite or is it cash under the table? If someone's income enables them to qualify for a property tax credit and fails to report the rental income, wouldn't that be fraudulent?

[arctichomesteader]

Originally Posted by JGBigGreen

Don't know of any state that doesn't tax homes or property. And wouldn't sales tax be more regressive than property taxes?

Only certain small (mainly urban) areas of Alaska have property taxes.

I can't think of anything more regressive than telling someone to cough up thousands every year or have their home taken away. Most necessities are exempt from sales tax.

[harry chickpea]

Originally Posted by arctichomesteader

Only certain small (mainly urban) areas of Alaska have property taxes.

I can't think of anything more regressive than telling someone to cough up thousands every year or have their home taken away. Most necessities are exempt from sales tax.

Alabama charges sales tax on food, usually totaling up to 10% Homestead exemptions often come with either reduced property tax or sometimes complete forgiveness. Also, with tax sales of homes, that generally only occurs after the person owning and living in it is deceased. In a way, it can often make more money for a state as property values increase over time and interest gets charged and deferred and compounded.

[JGBigGreen]

Do you understand the definition of a regressive tax?

Originally Posted by arctichomesteader

Only certain small (mainly urban) areas of Alaska have property taxes.

I can't think of anything more regressive than telling someone to cough up thousands every year or have their home taken away. Most necessities are exempt from sales tax.

[arctichomesteader]

Originally Posted by JGBigGreen

Do you understand the definition of a regressive tax?

Yes and every list of examples will include property taxes. Why would you argue it is not a regressive tax?

[arctichomesteader]

Originally Posted by harry chickpea

Alabama charges sales tax on food, usually totaling up to 10% Homestead exemptions often come with either reduced property tax or sometimes complete forgiveness. Also, with tax sales of homes, that generally only occurs after the person owning and living in it is deceased. In a way, it can often make more money for a state as property values increase over time and interest gets charged and deferred and compounded.

Alabama is not really relevant here. And tax sales happen all the time in VT before the owners die.

So much money is actually spent administering property taxes at local and state levels here in various ways (listers or hired assessors, tax appeals/hearings, the state tax department processing forms and records, courts hearing appeals, on and on) that simply raising the income tax a bit and eliminating the property tax would likely increase revenue for the state.

[timberline742]

Originally Posted by arctichomesteader

Yes and every list of examples will include property taxes. Why would you argue it is not a regressive tax?

They list property taxes because generally states don't have programs to reduce the burden for poorer people, Vermont does (Property Tax Credit), which effectively reduces the property tax levied on lower earners. This is the same as reducing the till rate on lower level earners, and making higher earners pay a higher effective rate. This makes the property tax system in VT progressive, not regressive.

[arctichomesteader]

Originally Posted by timberline742

They list property taxes because generally states don't have programs to reduce the burden for poorer people, Vermont does (Property Tax Credit), which effectively reduces the property tax levied on lower earners. This is the same as reducing the till rate on lower level earners, and making higher earners pay a higher effective rate. This makes the property tax system in VT progressive, not regressive.

Only for the state education tax not municipal taxes. And only on the homestead portion. If you have a 5 or 10 acre lot (the norm in many areas of this state) only a small portion of the lot falls under the homestead portion. The rest is taxed at the full rate. But you will still face a tax sale of your home if you can't afford the taxes on that. Even if your income is near 0 for a year (let's say you have a major health problem or an accident, that is entirely possible), you will still need to come up with the property taxes (likely still in the thousands) or lose your home. It is and will always be a regressive tax.