Henry Raymond
Fairfax News => Political Issues/Comments => Topic started by: Carolyn Branagan on January 31, 2005, 11:06:29 AM
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Thanks Henry for helping me get back on! I couldn't figure out how to log back in, but I guess I'm OK now! It has been a couple of weeks.
Anyway, the legislature is progressing along. We've passed 2 bills out of the Ways and Means Committee. The first was the bill to lower school property taxes 8 cents, the homestead rate would be $1.02 and the non-homestead would be $1.51, if this bill is signed into law. It looks promising, as the bill was passed out of the Senate on Friday . Don't forget the statutory rate is $1.10 and $1.59 respectively. The Ed. Fund is continuing to bring in too much money, and we are trying to figure out how to stop that. In the meantime this bill to lower the state portion of the school tax bill will return much of the overage to the taxpayers. When we figure out how to make the Ed. Fund stop generating so much uneeded money, the statutory rates will kick in.
School taxes are a huge topic I could go on and on about, but since most of the posts on this site are short, I'll stop !
The other bill passed out of Ways and Means is the annual "Fee Bill" which sets the rate of some fees and sets new fees where needed. Fees already in use are due every 3 years for review and possible increase. We sent several of the requests to other committees, because we thought there were policy questions involved . Our committee deals just with raising revenue, not policy. So this year's "Fee Bill" is pretty minor as these thing go. I'm reporting the bill on the floor Thursday.
I love my job in Montpelier. Please feel free to contact me anytime at home at 527-7694 or at the statehouse by e-mail cbranagan@leg.state.vt.us
from,
Representative Carolyn Branagan
Franklin-1, Georgia/Fairfax
Vermont House of Representatives
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Carolyn
Could you give your opinion on how often a reappraisal might be needed for Fairfax?
The Town is spending $80,000 over the course of 2 years for the current reappraisal. Yet is seems with Fairfax becoming more and more a bedroom community for Chittenden county, the appraisal values will continue to increase rapidly. The penalty on taxes for a percentage drop in the CLA is worriesome.
If CLA is 80% then the increase in Tax Rate By is 25%.
If CLA is 75% then the increase in Tax rate is 33%.
It seems to me Fairfax might anticipate a reappraisal in 5 or 6 years?
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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!
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Thanks Carolyn
The balance in the Fairfax savings account for reappraisal is $24,000 as of 12.31.2004. Fairfax will be adding $40,000 in 2005 from property taxes to pay for the current reappraisal.
I appreciate all the efforts to address property tax concerns.
I still suspect we could be looking at a reappraisal in 7 years. Seems we should reevaluated in 5 years and get on a waiting list before it is too late. ? (See Town of Georgia)