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Originally Posted by Dickie B from HB
Jeff-
You make some good points. But keep in mind that the value of your property is meaningless if you have to live in it. For those on a fixed income property appreciation only means that perhaps they will have to sell when the taxes become unaffordable. Where do they move to? Will they move to some less desireable location where the costs are less? Is this the destiny of NH property owners? Your reasoning leads one to conclude that you are okay with this. Is this the legacy you want for NH?
DB
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The problem with supporting someone, and property tax relief IS government support, is that you are forced into some evaluation of their need and whether they “deserve” the support. You supply an example of someone on fixed income. OK, why are they on a fixed income and how much is it?
Example one:
Useless 65 year old son inherits parent’s lake house. It’s been in the family for generations. Son has no money for taxes or maintenance. Does he deserve to keep the house?
Example two:
Two people with extremely similar lives, both have lake property. One difference, Person A saves $5000 a year for retirement, Person B goes on $5000 vacation every year. After 40 years of working, at retirement, A has a million bucks in the bank and can afford property tax for his appreciated lake house. B has nothing(except his million dollar lake house). Should we help B? Why?
Example three:
Again two people, both on moderate incomes, both save a bit. A lives in a lake house, B doesn’t. A’s property appreciates and taxes go up, B’s much less so. At retirement, A has a house worth $1,000,000 and can not afford the property tax. B’s house is worth $300,000 and he can afford the taxes. Should A get tax breaks? How about B?
Example four:
Two retired seniors living in $1,000,000 lake houses with property taxes of $15,000. One has income sources of $100,000 a year, the other $30,000. Should the one with $30K income be given a tax break? Why? How about the other senior?
Where will people move to? Let’s see, sell a million dollar house on the lake and buy a very nice $300K retirement home near the lake (probably a nicer house than their lake house). Put boat into marina. Bank $700K for retirement. Sorry, not what they obviously want but hardly a desperate existence. As I noted family help and reverse mortgages are also an option. How about a condo on the lake? How about moving to a lake where land is less pricey? Many people retire and move across the country to less expensive, smaller, and easier to maintain property. They also look for a warmer climate. The negatives are that they move away from community, friends, and family. I don’t know how many people are “forced” into choices by reality and how many happily make such changes. Should government get involved with tax relief for all these people? Many (most?) towns already have various tax adjustments for seniors, veterans, and other purposes. I think that is appropriate and reasonable although I know many seniors who are well of and really don’t need the relief. Wouldn’t the money be better deserved by a young family just starting in their first home who are struggling with monthly bills?
The New Hampshire “rules” for taxes are well established and overall have been and continue to be a low burden for the state’s citizens. Again, what are the surprises? That property taxes are the primary source of revenue in the state? That valuable land appreciates in value? That property taxes go up with the value of the property? What I want people to do is to understand their choices and take RESPONSIBILITY for them. I don’t want government evaluating who deserves breaks and who doesn’t because it’s an impossible and inherently unfair process. The complexity of human lives is impossible to be analyzed. When government decides that someone “deserves” tax relief they automatically decide that everyone else does not deserve the relief and ALSO will pay more to subsidize the “deserving one”. I will take responsibility for my life and you take responsibility for yours. Government should take responsibility for making sure that we don’t do bad things to each other via laws. Then BUTT OUT.