I have been working with State Representative Alice Hanlon Peisch (Wellesley) to get legislation which would correct our Taxation Withiut Representation. Today, I contacted her office and obtained a draft of what she is proposing. Copied below is the language of MGL Chapter 59, Section 5c into which I have inserted (in BOLD and UNDERLINED) the opperative language she has drafted. I'm dissapointed in the narrow scope proposed. If passed, it would extend the assessment to only second home owners who are residents of Massachusetts and who do not rent out theirroperties for more than two weeks a year.
The specifics on the Bill: House Docket No. 3354, Filed on 1/14/2009, and subsequently assigned to the Revenue Committee. No date has been set for public hearing. I am to be advised when that happens. Its title is: An Act Relevant to Resident Property Tax Exemption.
PART I. ADMINISTRATION OF THE GOVERNMENT
TITLE IX. TAXATION
CHAPTER 59. ASSESSMENT OF LOCAL TAXES
PERSONS AND PROPERTY EXEMPT FROM TAXATION
Chapter 59: Section 5C. Exemptions for residential real property in cities or towns assessing at full and fair cash valuation
Section 5C. With respect to each parcel of real property classified as Class One, residential, in each city or town certified by the commissioner to be assessing all property at its full and fair cash valuation, and at the option of the board of selectmen or mayor, with the approval of the city council, as the case may be, there shall be an exemption equal to not more than twenty per cent of the average assessed value of all Class One, residential, parcels within such city or town; provided, however, that such an exemption shall be applied only to the principal residence of a taxpayer as used by the taxpayer for income tax purposes[.], and for any secondary residence of a taxpayer who resides in the Commonwealth and is not used as a rental property for more than two weeks in a calendar year. This exemption shall be in addition to any exemptions allowable under section five; provided, however, that in no instance shall the taxable valuation of such property after all applicable exemptions be reduced below ten per cent of its full and fair cash valuation, except through the applicability of section eight A of chapter fifty-eight and of clause Eighteenth of section five. Where, under the provisions of section five, the exemption is based upon an amount of tax rather than on valuation, the reduction of taxable valuation for purposes of the preceding sentence shall be computed by dividing the said amount of tax by the residential class tax rate of the city or town and multiplying the result by one thousand dollars. For purposes of this paragraph, “parcel” shall mean a unit of real property as defined by the assessors in accordance with the deed for such property and shall include a condominium unit.
In those cities and towns in which an exemption is made available hereunder, a taxpayer aggrieved by the failure to receive such residential exemption may apply for such residential exemption to the assessors, in writing, on a form approved by the commissioner within three months after the date on which the bill or notice of assessment was sent.
A timely application filed hereunder shall, for the purposes of this chapter, be treated as a timely filed application pursuant to section fifty-nine.
For purposes of this section, with respect to real property owned by a cooperative corporation, as defined in section 4 of chapter 157B, that portion which is occupied by a member pursuant to a proprietary lease as such member’s domicile and is used as such member’s principal residence for income tax purposes shall be deemed to be real property owned by such member for purposes of this section, provided that the portion of the real estate is represented by the member’s share or shares of stock in the cooperative corporation and the percentage of such portion to the whole is the percentage of such member’s shares in the cooperative corporation to the total outstanding stock of the corporation, including shares owned by the corporation. Such portion of such real property shall be eligible for exemption from taxation pursuant to this section if such member meets all requirements for such exemption. Any exemption so provided shall reduce the taxable valuation of the real property owned by the cooperative corporation; provided, however, that the reduction in taxes realized thereby shall be credited by the cooperative corporation against the amount of such taxes otherwise payable by or chargeable to such member. Nothing in this paragraph shall be construed to affect the tax status of any manufactured home or mobile home under this chapter, but shall apply to the land on which such manufactured home or mobile home is located if all other requirements of this paragraph are met. This paragraph shall take effect in a city or town upon its acceptance by the city or town.
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In February, I met with the legislative assistant to State Senator Scott Brown to bring Brown's office up to date on our peril. I was told that Brown opposes Taxation Withoout Representation (He is one of only 5 Republicans in the senate). I will try to get him on board with the Peisch proposal and lobby him to attempt amendments more agreeable to our proposal.
I will be emailing a message, similar to this one, to 50 Representatives with 20 or more constituents who are Non-Resident Barnstable taxpayers. I have identified about 120 of those constitiuents to whom I plan to US mail our message and solicit their contacting their Representative to support the Peisch Bill.
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I could still use more non-resident email addresses. Cheers, Tom
Thursday, March 26, 2009
Saturday, September 15, 2007
Letter, Boston Globe: Taxation Without Representation
Subject: Taxation: No Representation
Editor:
An insidious state law is slowly gaining favor among municipalities eager to take money from non-resident property owners. These owners have no voting rights where their properties are located.
Twelve cities and towns from Boston to Barnstable, under Title IX (Taxation), Chap 59, Sec. 5c, are abating taxes for primary-home residents so they can shift taxes to owners who can't vote to protect themselves and who get no representation from local elected officials.
Seasonal home owners clearly receive nominal services in exchange for higher than average taxes. They may even be paying a personal property taxes not imposed on voting owners. These non-voter owners don't have children in local schools; place nominal demands on police, health, roads and social services. In the tradition that local governments tax for services rendered, the practice of taxing when no service is provided is blatantly unfair -- it's TAXATION WITHOUT REPRESENTATION and Sec. 5c should be repealed.
Editor:
An insidious state law is slowly gaining favor among municipalities eager to take money from non-resident property owners. These owners have no voting rights where their properties are located.
Twelve cities and towns from Boston to Barnstable, under Title IX (Taxation), Chap 59, Sec. 5c, are abating taxes for primary-home residents so they can shift taxes to owners who can't vote to protect themselves and who get no representation from local elected officials.
Seasonal home owners clearly receive nominal services in exchange for higher than average taxes. They may even be paying a personal property taxes not imposed on voting owners. These non-voter owners don't have children in local schools; place nominal demands on police, health, roads and social services. In the tradition that local governments tax for services rendered, the practice of taxing when no service is provided is blatantly unfair -- it's TAXATION WITHOUT REPRESENTATION and Sec. 5c should be repealed.
Thursday, August 30, 2007
Barnstable Assessments Penalize Absent Owners
Thomas A. DeRiemer
11 Wiswall Circle, Wellesley, MA 02482 781-235-9335 tderiemer@msn.com
September 1, 2007
Dear absentee/second home owner of property located in the Town of Barnstable, Massachusetts
Subject: Property taxation without representation:
The Town of Barnstable has found a way to unfairly transfer its operating costs to those of us who are non-resident owners. The new way is in addition to the tax on personal property that non-resident taxpayers do not pay. As of July, 2007, 15,438 properties had qualified for exemptions. More than 7,000 properties are taxed at 100% of their assessed value.
*Resident owners are granted a 20% residential assessment exemption. In 2007, this represents $1.6 billion in values shifted to non-residing owners. For the town-wide average, a Barnstable property, assessed at $540,485, the tax savings is significant. Using the example of a C-O-MM water district property, a resident’s Town + District tax rate is $6.43 per $1,000 of value (Tax levy is $3,474). The non-resident rate is $7.66 (Tax levy $4,140) – a difference of $666.
Typically, the non-resident taxpayer has no children in Barnstable schools, places minimum wear on roads and drains, recreation and social services. They should be taxed less, rather than more, than a full service year-round resident. IT’S NOT FAIR! The non-resident does not vote, it’s taxation without representation.
11 Wiswall Circle, Wellesley, MA 02482 781-235-9335 tderiemer@msn.com
September 1, 2007
Dear absentee/second home owner of property located in the Town of Barnstable, Massachusetts
Subject: Property taxation without representation:
The Town of Barnstable has found a way to unfairly transfer its operating costs to those of us who are non-resident owners. The new way is in addition to the tax on personal property that non-resident taxpayers do not pay. As of July, 2007, 15,438 properties had qualified for exemptions. More than 7,000 properties are taxed at 100% of their assessed value.
*Resident owners are granted a 20% residential assessment exemption. In 2007, this represents $1.6 billion in values shifted to non-residing owners. For the town-wide average, a Barnstable property, assessed at $540,485, the tax savings is significant. Using the example of a C-O-MM water district property, a resident’s Town + District tax rate is $6.43 per $1,000 of value (Tax levy is $3,474). The non-resident rate is $7.66 (Tax levy $4,140) – a difference of $666.
Typically, the non-resident taxpayer has no children in Barnstable schools, places minimum wear on roads and drains, recreation and social services. They should be taxed less, rather than more, than a full service year-round resident. IT’S NOT FAIR! The non-resident does not vote, it’s taxation without representation.
Barnstable's Unfair Abatements and Taxation
Thomas A. DeRiemer
11 Wiswall Circle, Wellesley, MA 02482 508-428-9335 tderiemer@msn.com
August 2, 2007
Dear Fellow Non-Resident Property Owner within the Town of Barnstable, MA:
Re: UNFAIR PROPERTY TAXATION WITHOUT REPRESENTATION
It has come to my attention that we, as second property owners within the Town of Barnstable, during the past year, have been taxed at a higher rate than resident/voters of the Town.
There are 7,000+ non-resident Barnstable taxpayers and 15,540 resident/voters of the Town. How it works (to simplify the process) is that the Town Assessor deducts $105,000 from the assessed value of each resident’s property. This creates a different levy for residents and non-residents. The levying of this different rate upon non-residents creates an average tax penalty of $666 for the current year.
Because we reside less than full time within Barnstable, we do not have children in the schools and receive fewer benefits from our taxes for good roads and social services. The result is we are disproportionately taxed without the benefit of voter representation. We pay the same permit fees for beach and refuse disposal permits. The Town has it wrong. We should be getting the benefit if there is to be a differential formula!
I solicit your support.
11 Wiswall Circle, Wellesley, MA 02482 508-428-9335 tderiemer@msn.com
August 2, 2007
Dear Fellow Non-Resident Property Owner within the Town of Barnstable, MA:
Re: UNFAIR PROPERTY TAXATION WITHOUT REPRESENTATION
It has come to my attention that we, as second property owners within the Town of Barnstable, during the past year, have been taxed at a higher rate than resident/voters of the Town.
There are 7,000+ non-resident Barnstable taxpayers and 15,540 resident/voters of the Town. How it works (to simplify the process) is that the Town Assessor deducts $105,000 from the assessed value of each resident’s property. This creates a different levy for residents and non-residents. The levying of this different rate upon non-residents creates an average tax penalty of $666 for the current year.
Because we reside less than full time within Barnstable, we do not have children in the schools and receive fewer benefits from our taxes for good roads and social services. The result is we are disproportionately taxed without the benefit of voter representation. We pay the same permit fees for beach and refuse disposal permits. The Town has it wrong. We should be getting the benefit if there is to be a differential formula!
I solicit your support.
Monday, August 13, 2007
Barnstble, MA Assesses Unfairly
Barnstable non-resident/non-voting taxpayers are being unfairly taxed due to a $105,000 assessment reduction granted to full time residents. This amounts to an average $650 tax penalty levied on the 7,000+ non-residents. Some 15,540 residents are benefiting.
For the non-voting/non-resident owners this is clearly TAXATION WIHTOUT REPRESENTATION – a notion long ago abused. Nonetheless, the Barnstable Town Council voted it in a year ago. In November, unless Council members hear loud opposition, they could renew the program for another year.
Please tell the Council we care about equity – You can show your objections by mailing the stub below to:
Thomas DeRiemer
11 Wiswall Circle, Wellesley, MAS 02482
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Comments: _______________________________________________________________
Printed name: ___________________ Signature: ____________________ Date: _____
Barnstable property address: ____________________________________ Zip: ______
Mailing address: ______________________________________________ Zip: ______
Email address: ______________________________
For the non-voting/non-resident owners this is clearly TAXATION WIHTOUT REPRESENTATION – a notion long ago abused. Nonetheless, the Barnstable Town Council voted it in a year ago. In November, unless Council members hear loud opposition, they could renew the program for another year.
Please tell the Council we care about equity – You can show your objections by mailing the stub below to:
Thomas DeRiemer
11 Wiswall Circle, Wellesley, MAS 02482
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Comments: _______________________________________________________________
Printed name: ___________________ Signature: ____________________ Date: _____
Barnstable property address: ____________________________________ Zip: ______
Mailing address: ______________________________________________ Zip: ______
Email address: ______________________________
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