More Taxing

Like the idiot I am, I have gotten involved in trying to solve the controversy in our town over property taxation. ML and I are both on the second committee drafted by the selectmen to recommend a way to bring our property tax policy into conformation with state law while still maintaining open space and the rural character of our town.

Our town has been taxing land at about 10% of market value and homes at about 80% of market value. This has drawn complaints from citizens with expensive houses on small lots who feel they pay more than their fair share. State law says all property shall be assessed at market value, although there are also provisions for valuing land at ‘current use value’ if it is open space, farm or forest.

The first committee to study this problem recommended that the town do a revaluation immediately, at considerable expense, and that the revaluation value everything at market value. Their recommendation would have saved members of their own committee many thousands of dollars. It would also have raised the taxes on the largest farm in town, about 500 acres owned by a long time local farm family, by $12,000 per year. This would not have helped preserve the rural character of the town.

Fortunately, the town meeting resoundingly defeated a warrant item appropriating the money for said revaluation.

As my contribution to the first meeting of our new committee, I did a very rough Cost of Community Services study for our town. I found that, even with our skewed valuation of land versus buildings, we spend less than $.50 on open space/farms/forest for every $1.00 of revenue it generates. On the other hand we spend $1.12 on services to residential property for every $1.00 it generates. Moreover, if we raise taxes on land, those with the most expensive houses will save the most, while those with the least expensive houses will see their taxes rise the most.

Now it is our job to satisfy the disgruntled, or remove any cause for action, by finding away to treat land and buildings equally, while minimizing any tax increases on large land parcels, especially those held by long time residents without deep pockets. Any thoughts or advice are most welcome.