New Waterfront Tax proposed HB 629-FN

[Descant]

Originally Posted by tis

But how far can they go before people say it just isn't worth it anymore-especially if you only use it a couple of months a year?? I do think if taxes get high enough there won't be buyers. I have a friend selling right now because she can't afford the taxes and she is heartbroken because she loves it and it has been in her family for a long time.

More and more properties will go to short term rentals. Properties will seek exceptions and subdivide. where there was one dock, there will be three. Those who can't subdivide can make themselves a condo.

The bill sponsors are: Leishman (D, Peterborough), Harrington, (R-Strafford) and Ouellett, (R-Colebrook).

[Descant]

In 2021 it was announced that we (NH) would get $35 MM for dam rebuilding and repairs to state dams. $5MM of that was to go towards municipally owned dams. I see that Northwood Meadows Dam, which failed in 2014 and again in 2018 is scheduled for repairs in 2025 and the lake level was lowered last fall for that purpose. That was planned to cost $600,000 in 2022. Don't know what it will cost now or where hat money will come from. Who owns that dam?
Nevertheless, the initial appearance to me is that HB629-FN will likely raise a lot of money every year, and the legislature will drain it off over the years for other purposes.

If I read the Fiscal Note to the bill correctly, it will generate $8MM annually in revenue and $300,000 a year will be spent on maintenance. Somebody needs to explain this to me as a good plan.

[garysanfran]

For over 60 years I have watched lakefront homes get sold because of the increasing property tax.

Do any town officials care?

Very much so. They'd love to see you go.

The home will be bought by someone with more money than the displaced owner/seller and they'll do higher-end shopping. Restaurants will benefit as will other retail establishments. The town will get increased revenue with fewer complaints from the new owners.

Of course that also has meant bigger and faster boats...Then a need to increase the size of the public docks.

[hemlock]

As I review this more closely this is being structured as a registration fee tacked on the law that allows boat registrations. So you are not paying a tax you are paying a fee to register your shore frontage but only on those lakes where there is a state owned dam.

So whats the difference?

Apparently the state constitution requires that taxes be proportional so all kinds of safeguards are put in place such as abatement rules, Superior Court appeals, The Bureau of Land and Tax appeals etc. This would avoid all those pesky details.

As a friend of mine noted this is the Live Fee or Die State.

[John Mercier]

Well, all that means is death is an option.
Funny how many don't choose that option.

The difference is that with a government owned dam... the option could be to breach the dam, as we did in Belmont, and you no longer have waterfront property.

That would in thesis prevent that option from happening.

[Descant]

Originally Posted by garysanfran

For over 60 years I have watched lakefront homes get sold because of the increasing property tax.

Do any town officials care?

Very much so. They'd love to see you go.

The home will be bought by someone with more money than the displaced owner/seller and they'll do higher-end shopping. Restaurants will benefit as will other retail establishments. The town will get increased revenue with fewer complaints from the new owners.

Of course that also has meant bigger and faster boats...Then a need to increase the size of the public docks.

And, the BOS likes the newbies because they can't/don't vote.

[John Mercier]

Originally Posted by Descant

In 2021 it was announced that we (NH) would get $35 MM for dam rebuilding and repairs to state dams. $5MM of that was to go towards municipally owned dams. I see that Northwood Meadows Dam, which failed in 2014 and again in 2018 is scheduled for repairs in 2025 and the lake level was lowered last fall for that purpose. That was planned to cost $600,000 in 2022. Don't know what it will cost now or where hat money will come from. Who owns that dam?
Nevertheless, the initial appearance to me is that HB629-FN will likely raise a lot of money every year, and the legislature will drain it off over the years for other purposes.

If I read the Fiscal Note to the bill correctly, it will generate $8MM annually in revenue and $300,000 a year will be spent on maintenance. Somebody needs to explain this to me as a good plan.

$300,000 per year will be spent on administration.
The remainder would flow into the dedicated fund.

[tis]

Originally Posted by Descant

More and more properties will go to short term rentals. Properties will seek exceptions and subdivide. where there was one dock, there will be three. Those who can't subdivide can make themselves a condo.

The bill sponsors are: Leishman (D, Peterborough), Harrington, (R-Strafford) and Ouellett, (R-Colebrook).

Yes which is already exactly why so many ARE renting-they need it just to pay their taxes.