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Political Issues/Comments / more legislature
« on: February 18, 2005, 07:38:06 PM »
Hi Jackie,
Thanks for your reply. By state law, towns in Vermont have to reappraise when their CLA falls lower than 80% or the COD is higher than 20. CLA basically compares the listed value of property for what it will sell for. The COD is how accurate the Grand List is when comparing properties within the town.
Reappraisals are very expensive, usually from $60 to $150 per parcel, and complicating the problem for towns is the fact that there are not very many companies that can do reappraisals . The town of Georgia had to go on a 3 year waiting list. The state has been sending towns $6 per parcel since Act 60 became law in 1997 to help pay for reappraisals, but this is not enough money. I know Donna Meunier has been keeping this money in a special fund for reappraisals, so Fairfax has some money to start with.
The problem comes from the rapidly increasing value of property in the entire state, but especially here in the Champlain Valley. You are right when you say our proximity to Chittenden County is a big factor in increasing land prices. How long will this continue? No one really knows! On one hand it is good, because it means all who own property are increasing their equity just by owning it. But on the other hand it is bad because our current system for funding schools is tied to the property tax: we tax on the value of land and buidings and use that money to pay for our schools. I want to find a way to get away from the property tax.
You may know that the reason I ran for the legisalture was out of frustration over school property taxes. I was proud to have had a part in Act 68 which lowered school property taxes for 83% of Vermont communities, including both Fairfax and Georgia. But I know Act 68 is not perfect. This year the legislature has lowered property taxes 8 cents from the statutory rate, that is 3 cents lower than last year. We are able to do this because of the rapidly increasing value of land. We are giving money back to the taxpayers in this reduction in tax, but I wish there was a way not to collect it in the beginning. Land values are rising so fast we cannot correctly estimate what the tax should be year to year.
I know this response is way too long. I hope I have answered your question and haven't bored you! I'll be at Fairfax Town Meeting next week, and we can talk further. Or e-mail me back if you have other questions.
If land values continue to rise at the current rate, towns will have to reappraise at least every 3 years, unless the law is changed.
from,
Representative Carolyn Branagan
I'm tired tonight, so I hope there aren't too many spelling mistakes in this message!
Thanks for your reply. By state law, towns in Vermont have to reappraise when their CLA falls lower than 80% or the COD is higher than 20. CLA basically compares the listed value of property for what it will sell for. The COD is how accurate the Grand List is when comparing properties within the town.
Reappraisals are very expensive, usually from $60 to $150 per parcel, and complicating the problem for towns is the fact that there are not very many companies that can do reappraisals . The town of Georgia had to go on a 3 year waiting list. The state has been sending towns $6 per parcel since Act 60 became law in 1997 to help pay for reappraisals, but this is not enough money. I know Donna Meunier has been keeping this money in a special fund for reappraisals, so Fairfax has some money to start with.
The problem comes from the rapidly increasing value of property in the entire state, but especially here in the Champlain Valley. You are right when you say our proximity to Chittenden County is a big factor in increasing land prices. How long will this continue? No one really knows! On one hand it is good, because it means all who own property are increasing their equity just by owning it. But on the other hand it is bad because our current system for funding schools is tied to the property tax: we tax on the value of land and buidings and use that money to pay for our schools. I want to find a way to get away from the property tax.
You may know that the reason I ran for the legisalture was out of frustration over school property taxes. I was proud to have had a part in Act 68 which lowered school property taxes for 83% of Vermont communities, including both Fairfax and Georgia. But I know Act 68 is not perfect. This year the legislature has lowered property taxes 8 cents from the statutory rate, that is 3 cents lower than last year. We are able to do this because of the rapidly increasing value of land. We are giving money back to the taxpayers in this reduction in tax, but I wish there was a way not to collect it in the beginning. Land values are rising so fast we cannot correctly estimate what the tax should be year to year.
I know this response is way too long. I hope I have answered your question and haven't bored you! I'll be at Fairfax Town Meeting next week, and we can talk further. Or e-mail me back if you have other questions.
If land values continue to rise at the current rate, towns will have to reappraise at least every 3 years, unless the law is changed.
from,
Representative Carolyn Branagan
I'm tired tonight, so I hope there aren't too many spelling mistakes in this message!