Friday, July 9, 2010

“Property values go down, but tax rates, levies go up” plus 2 more

“Property values go down, but tax rates, levies go up” plus 2 more


Property values go down, but tax rates, levies go up

Posted: 08 Jul 2010 09:22 PM PDT

Yesterday
Posted: July 8, 2010
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Manchester sets property tax rate; first payment due in September

Posted: 09 Jul 2010 12:18 AM PDT

Manchester sets property tax rate; first payment due in September

By Patrick McArdle
STAFF WRITER - Published: July 9, 2010

MANCHESTER — The Select Board set the municipal tax rate at a special meeting on Tuesday and while it's higher than last year's, many residents will see an overall decline in what they owe.

The municipal tax rate was set at 0.1696 cents per $100 of assessed value. Last year, the rate was 0.1673, a difference of .0023, or about 1.3 percent.

The Select Board had developed a budget that members hoped would keep the municipal tax rate level, but a decrease of about $23.5 million in the Grand List caused the increase per $100.

However, the decrease in the Grand List also meant a decrease in the town's education tax rate, which is set at $1.3392 this year. Last year, the education tax rate was $1.3503. The decrease is about .0111 cents, or a decline of about 0.8 percent.

Town Manager John O'Keefe said that for the owner of a $300,000 house, which didn't go up or down in value from last year, municipal taxes would go up about $7 this year but education taxes would go down about $33 so the homeowner would pay about $26 less overall.

The combined tax rate for Manchester homesteaders is $1.5149. Last year, it was $1.5234. The decline is .0085 cents, or about 0.5 percent.

Tax bills should be sent out shortly. The first installment, of 58 percent of the property tax bill, is due Sept. 10 and the rest is due on Feb. 10.

This year, tax bills will look a little different because they will show line items for the municipal tax rate and the amount of appropriations approved by voters. The first three lines of the new style of tax bills will show the largest appropriations, the Mark Skinner Library, the Manchester Rescue Squad and the Southwestern Vermont Council on Aging, while the fourth line will combine the rest of the appropriations.

O'Keefe said the purpose of the new style of tax bills is to give each taxpayer a clear picture of how much the appropriations affect his or her property tax.

Space issues prevent each appropriation being listed individually, which O'Keefe said is why only the top three are singled out.

Voters approved more than a dozen appropriation requests and the municipal budget of about $6.5 million at this year's floor meeting. About $2.3 million of that municipal tax rate is money to be raised by property taxes.

The tax rate was approved unanimously on Tuesday by the three Select Board members present at the meeting.

Board member Steven Nichols expressed strong concerns about increasing the municipal tax rate but state law says that in towns where voters approve the budget and not a tax rate, the Select Board is bound to set a tax rate that will meet the budget approved.

patrick.mcardle@rutlandherald.com


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Government shelves property tax proposal for next budget

Posted: 08 Jul 2010 05:02 PM PDT

The Irish Times - Friday, July 9, 2010

STEPHEN COLLINS, Political Editor

THE GOVERNMENT has shelved consideration of a property tax and the issue is now off the Fianna Fáil-Green Party Coalition's agenda.

Senior sources in both parties have told The Irish Times that a property tax would not feature in December's budget.

Some form of property tax had been mooted in recent months by Department of Finance officials as an alternative to deep cuts in public spending next year.

It was suggested that a flat rate property tax had the potential to contribute significantly to the Government's target of achieving further savings of €3 billion in next year's budget.

However, a number of Fianna Fáil TDs expressed strong opposition to such a tax while the Green Party leader John Gormley came out in opposition to a flat rate property tax.

A property tax was one of the key recommendations of the Commission on Taxation's report on the reform of the tax system a year ago.

The commission suggested that an annual tax on residential property should be introduced as soon as was feasible in order to rebalance the current tax system.

It recommended the development of an up-to-date valuation base for all residential, business, commercial and industrial property in Ireland but to date no substantial work has been carried out on this.

Fianna Fáil TD for Dublin South East Chris Andrews tabled a motion opposing a property tax at Tuesday night's meeting of the Fianna Fáil parliamentary party.

The meeting was addressed by Minister for Finance Brian Lenihan and afterwards Mr Andrews expressed the view that a property tax would not feature in the December budget.

"Effectively, it's just not happening. I don't think it's going to be a runner this year. If the Government lasts until 2012, it will not be introduced in a budget only a couple of months before a general election," said Mr Andrews.

The motion proposed by Mr Andrews and also signed by a number of other TDs read: "Given the collapse in property values nationally and the serious difficulties that many people are experiencing in meeting repayments, the Government must give a commitment that no tax on family homes be introduced in December's budget."

While Mr Lenihan told the meeting that he was not ruling anything in or out for the budget it was clear yesterday that the debate about a property tax is over for the lifetime of the Coalition.

A water tax is also unlikely to feature next year as the Green Party is committed to nothing less than a fully metered system.

Fitting every house in the country with a water meter could take years and will certainly not happen in time to provide extra revenue for the exchequer next year.

A widening of the existing tax base appears to be the only alternative to a property tax as a big-ticket item that can make a substantial contribution to the savings package needed for next year.

Mr Lenihan has pointed on a number of occasions to the fact that about half of the workforce is outside the tax net and a concerted effort to bring more workers into the net is likely.

With the Dáil now in recess Ministers will get down to serious work on their departmental estimates next week and the Cabinet will have a comprehensive discussion on budget options the following week.

The Dáil adjourned yesterday for a 12-week summer recess and will return in plenary session on September 29th. Committees will continue to sit for the rest of July and throughout September.

Opposition parties objected strenuously to the length of the recess but Tánaiste Mary Coughlan said it was a nonsense to suggest that the Government was on holidays for that period.

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