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John Mercier · 11-19-2023, 09:55 AM

The ''education mess'' did not exist. It is only in the mind's of a few that aren't educated on the subject. At the time that the State Ed tax was added, around $20 million was being transferred from around 60 communities in the State to other locations... not a sizeable transfer... so Governor Lynch was willing to get rid of it in 2011 - even when it was more, but not much more than the original $20M

The assessing method is to use what it would currently sell for.
Our buildings went up in value because the cost of replacing them with a like structure has skyrocketed..
In 2016, we sold #1 2x4x8 common studs for a little over $3, by 2018 that had increased to the point that the same stud would go for three times that amount.
I had to change several window and door options out when framing costs skyrocketed after the softwood tariff imposed against Canada. In 2019, Covid hit... thousands/tens of thousands of summer homes became the primary residence for refugees from the big cities to our south and a building boom went from hypersonic to lightspeed. It caused lead times to move from weeks to months and created a complete shortage in pressure treated lumber. None could be found anywhere for any amount of money. We sold the year's supply before June.
We now have material somewhat moving down... some shortages and delays... as most builders could tell you... but we have no labor pool - so the cost of the labor to build is much higher and moving higher every day.

Regardless of how old a building is... the assessor is probably only going to depreciate it by 50% at best. And if kept in good shape... a lot less than that... because an existing building is still better than one that may not exist for another two to three years waiting for the labor and having to meet the new code. The demand for existing in any shape is now phenomenal, and anything near the lake that might be occupied and renovated has doubled to tripled in the last year or so... even on the smaller lakes.

It is doubtful that assessments will go down as more Boomers retire to the area. The demand for existing homes and renovations I suspect will continue throughout this decade, and the shortage of labor should worsen to the point that new builds will slow even further..

11-19-2023, 09:55 AM	#85
John Mercier Senior Member Join Date: Jun 2021 Posts: 3,066 Thanks: 2 Thanked 535 Times in 440 Posts	The ''education mess'' did not exist. It is only in the mind's of a few that aren't educated on the subject. At the time that the State Ed tax was added, around $20 million was being transferred from around 60 communities in the State to other locations... not a sizeable transfer... so Governor Lynch was willing to get rid of it in 2011 - even when it was more, but not much more than the original $20M The assessing method is to use what it would currently sell for. Our buildings went up in value because the cost of replacing them with a like structure has skyrocketed.. In 2016, we sold #1 2x4x8 common studs for a little over $3, by 2018 that had increased to the point that the same stud would go for three times that amount. I had to change several window and door options out when framing costs skyrocketed after the softwood tariff imposed against Canada. In 2019, Covid hit... thousands/tens of thousands of summer homes became the primary residence for refugees from the big cities to our south and a building boom went from hypersonic to lightspeed. It caused lead times to move from weeks to months and created a complete shortage in pressure treated lumber. None could be found anywhere for any amount of money. We sold the year's supply before June. We now have material somewhat moving down... some shortages and delays... as most builders could tell you... but we have no labor pool - so the cost of the labor to build is much higher and moving higher every day. Regardless of how old a building is... the assessor is probably only going to depreciate it by 50% at best. And if kept in good shape... a lot less than that... because an existing building is still better than one that may not exist for another two to three years waiting for the labor and having to meet the new code. The demand for existing in any shape is now phenomenal, and anything near the lake that might be occupied and renovated has doubled to tripled in the last year or so... even on the smaller lakes. It is doubtful that assessments will go down as more Boomers retire to the area. The demand for existing homes and renovations I suspect will continue throughout this decade, and the shortage of labor should worsen to the point that new builds will slow even further..