[OhBeeHave]

Originally Posted by flu189

In my town I am not as fortunate to get cookies and treats while being taken annually for twice to three times as much in terms of percentage to what my earnings can keep up with. I guess it would be like being at a bar and getting accosted by a drunk. Better to be punched in the face by a happy and apolgetic drunk then by a vile and nasty one even though it hurts just as much.

Sounds like your town is more in line with Brookhaven, NY. I've friends and neighbors paying $15K plus on their homes here with 1/2 acre tops. And those are normal sized homes, not McMansions. The way the screw us over on LI, we should be served a lobster dinner with a kiss on the lips. Maybe that's why the Chester appraisal didn't seem so bad to me -- it isn't as bad as LI, however it is bad just the same. (I like your analogy.)

Periodically on LI we hear about eliminating a property tax in favor of income tax. What you've written would make you a good example of why an income tax might be preferable.

[flu189]

Debates on which taxes to institute or increase in order to alleviate the burden on other taxes gets so much attention in many locations in the US. Even here in Vt you can occassionally hear talk of increasing the income tax to shift the burden. The problem here with a lower per capita income is that any benefit would be hardly noticable. Shifting the burden in many ways is just a shell game. What needs to be done is cap and freeze tax increases and then literally staple the stomach of govt and special interest spendthrifts shut. With the current state of rapid price increases for necessities on taxpayers I would just have to believe that even the most voracious glutons who distribute tax generated revenue have to know that the well will run dry. I am currently eyeing Tn as a possible future destination and they seem to draw the bulk of revenue from high sales taxes to include even groceries, though certain big ticket items such as vehicles are exempt from full taxation of the purchase price. With no income tax, very low property taxes, and limited other back door taxes such as user and personal property fees the numbers I have seen is that personal disposable income is quite a bit higher than that of residents in states like Vt where virtually everything is taxed. I know in my case a higher sales tax would definately equate to a much lower burden.

[OhBeeHave]

Seeing as I am not there full time, what do you feel the outcome would be if VT shifted to a higher sales tax in an effort to possibly reduce some of the property tax or school portion of the resident's burden? Or perhaps an increase of the rooms tax, a fine dining tax or another tax which tourists might bear the brunt of? Does VT have a luxury tax?

[flu189]

Originally Posted by OhBeeHave

Seeing as I am not there full time, what do you feel the outcome would be if VT shifted to a higher sales tax in an effort to possibly reduce some of the property tax or school portion of the resident's burden? Or perhaps an increase of the rooms tax, a fine dining tax or another tax which tourists might bear the brunt of? Does VT have a luxury tax?

Considering sales tax revenue is dropping with the economy it would not make if any dent toward relieving pressure from property tax. Also, don't forget that we share a border with NH which has no sales tax and from south to north has shopping choices which Vt'ers use to a considerable extent. Raising the already high rooms and meals taxes may just backfire as many potential visitors are already on the ropes so to speak in terms of spending. The affluent regular visitors and second home owners do bring in cash, but ultimately their volume will not be enough to offset state and town costs. We can shine the flashlight into all the closets and under beds all day and night, but the main way to control spiraling taxes is to cut spending and then should the economy rebound do not return to excessive spending.

[OhBeeHave]

Thanks for your insight.

Just one thing: not all second homeowners are affluent. We scrimped and saved to buy a small home in VT.

[tkln]

Ditto here...our second home (a 750 square foot condo) is really our first home. I still live at home with mom. Ahem.

(though I do pay both mortgages!)

[MRVphotog]

Vermont currently has one of the highest lodging and meals tax in the nation. It's already high enough.

I was in NH today and the buzz was the recently announced 200m budget deficit for the next biannium. Something is gotta give over there taxwise in the near future but it's political suicide to initiate something so no one wants to take the first step.

[flu189]

Originally Posted by OhBeeHave

Thanks for your insight.

Just one thing: not all second homeowners are affluent. We scrimped and saved to buy a small home in VT.

Did not mean to imply that all second home owners are affluent, but only those with assets in reserve will be able to obtain the dream of second homes in this day in age compared to those that were able to save in the past. I remember very well so many of our family friends from the 60's and early 70's back in NYC and LI that were able to buy second properties in the Poconos or upstate, or out further on the Island when Suffolk was still "rural". Back then a family with a stay at home mom could still survive. I remember my godparents who lived on the Island did very well just working as a maintenance man and cashier at Bohack (blast from the past) did well. Then again, you could buy a ranch out in Port Jeff for 35 to 50 k and taxes were only a fraction of they they are now.

[arctichomesteader]

Government spending needs to be drastically cut and property taxes entirely eliminated.

[OhBeeHave]

Update!

I heard back from the town; my appraisal was reduced by a little over $20K. It is more in line with what I could ask for the home.