Free State Project Forum

Please login or register.

Login with username, password and session length
Pages: [1]   Go Down

Author Topic: Another property taxes question  (Read 3141 times)

Floridian

  • ****
  • Offline Offline
  • Posts: 321
  • Friend of FSP
Another property taxes question
« on: December 19, 2008, 12:15:46 pm »

What kinds of property are taxed in NH (Real estate, personal property like vehicles & machinery, financial investments?) and are there EXEMPTIONS? 

I am primarily interested in understanding the details on exemptions (for reasons discussed below).  Tax inequity is one reason I am planning an escape from Florida.

From other posts, I gather that NH property taxes, like FL, are "ad valorem" taxes with the tax rate calculated within a given property tax jurisdiction as follows:
   Tax Rate = Total Govt Budget / Total Taxable Property Value

In Florida:
   Total Taxable Property Value = Total Property Value - Exemptions

Therefore: 
   Tax Rate  = Govt Budget / (Total Property Value - Exemptions)


Florida's "homestead" exemption has become so perverted that non-exempt homes are commonly taxed as much as 4x to 5x more than exempt homes of comparable value. Homestead exemption beneficiaries are long-time homeowners; most of whom vote and have the most influence in local elections.  Homestead tax increases are locked-in at a max of 3%, so this constituency doesn't feel much impact if the local govt goes on a spending binge. Local govt budgets have been increasing at double digit rates ever since the 3% cap was enacted.  Investors, absentee owners, new arrivals and commercial property owners get the tax shaft; not only are they hit with the actual budget increases, but they also have to cover the taxes not being paid by exempt homeowners. Politicians are not held accountable by voters. This is killing real estate values, commerce and the standard of living in Florida.

I am psyched to have stumbled upon FSP while web surfing the other day.  I signed up as a "friend" because I have too many strong ties to Florida to move within five years. (More like 6-7.)  However, in keeping with the action orientation of the project, I will start vacationing in NH next summer to get the lay of the land. I visited there in 1991 and ever since have considered being a FL/NH snow bird one day.  The FSP is a great incentive for me to make it happen at the first opportunity and will likely compel me to ditch FL residency in favor of NH.  However on a day like today, 76F/Sunny, it is hard to imagine completely cutting ties from FL.   8)

I realize this is a pretty long introductory post and I appreciate your patience and comments.

All best,
Floridian
Winter Park, FL 

Logged
Tu ne cede malis.

Fishercat

  • First 1000
  • FSP Participant
  • ****
  • Offline Offline
  • Posts: 343
Re: Another property taxes question
« Reply #1 on: December 19, 2008, 02:18:13 pm »

What kinds of property are taxed in NH
Real estate,

Yes.   A major exemption is Current Use.   http://www.nhspace.org/cu.shtml

Quote
personal property like vehicles & machinery,

Vehicle registration is, in part, a property tax, but I don't know about other machinery or business uses and exemptions.

Quote
financial investments?

No, but there is a tax on interest and dividends, which takes effect above a certain threshold.
Logged

cathleeninnh

  • FSP Treasurer
  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 601
  • I'm a llama!
Re: Another property taxes question
« Reply #2 on: December 19, 2008, 02:22:24 pm »

Welcome and I hope you make it up here.  

Exemptions are something we have to guard against. Exemptions sound great to a lot of people, but it just burdens others more. The property value portion of the equation gets more attention here when it should be the town budget. There are always some inequities with the property values because valuations are only periodic and staggered. Market fluctuations coupled with "views" that inflate market value have many here in an uproar.

Logged

Floridian

  • ****
  • Offline Offline
  • Posts: 321
  • Friend of FSP
Re: Another property taxes question
« Reply #3 on: December 19, 2008, 04:54:22 pm »

Thanks!  And Cathleen you have great insights on this.  Sounds like a workable system, even if NH property taxes are considered "high".  Current-use or agricultural exemptions have their merits, otherwise taxes can be a driving force for development of properties in order to produce income to cover the taxes.
Logged
Tu ne cede malis.

citizen_142002

  • Friend of the FSP
  • ****
  • Offline Offline
  • Posts: 490
  • I'm a llama!
Re: Another property taxes question
« Reply #4 on: December 19, 2008, 05:14:40 pm »

I've never heard of anyone here paying property taxes on personal possessions. Property tax is applied to real estate on a biannual basis, you pay every 6 months. You also get hit with a transfer tax when you buy or sell property. It's $15 per thousand of the selling price and has to be split between buyer and seller.

Vehicle registration is a fee based on the blue book value for a vehicle. A brand new vehicle costs more than an older on to register, but its not like some states where you have to pay a certain percentage of the sales price on a new vehicle.

There's no income or sales tax, but as Cathleen said, interest and dividends on investments are taxable. There is an 8% tax on prepared meals in restaurants and on hotel rooms. Obviously tobacco and booze are taxed although not particularly a lot. Just like everywhere else there are taxes on gasoline.
Logged

ny2nh

  • *****
  • Offline Offline
  • Posts: 532
Re: Another property taxes question
« Reply #5 on: December 19, 2008, 06:35:08 pm »

Vehicle registration is a fee based on the blue book value for a vehicle. A brand new vehicle costs more than an older on to register, but its not like some states where you have to pay a certain percentage of the sales price on a new vehicle.

Actually, registration fees are the same for all vehicles in one class. The TAX you pay to the municipality you live in varies not only on the weight/value of the vehicle but varies also from municipality to municipality. It is a TAX though. You pay the tax and the registration/plate fee.
Logged

Dreepa

  • First 1000
  • Global Moderator
  • *****
  • Offline Offline
  • Posts: 5124
Re: Another property taxes question
« Reply #6 on: December 19, 2008, 08:39:49 pm »

Floridain... maybe come up and visit us in March at the Liberty Forum
www.freestateproject.org/libertyforum

No problem being a friend... just help us spread the word down there in FLA!

welcome!
Logged

Moving_on_up

  • ****
  • Offline Offline
  • Posts: 60
  • I'm a llama!
Re: Another property taxes question
« Reply #7 on: January 04, 2009, 06:03:56 pm »


 I will start vacationing in NH next summer to get the lay of the land. I visited there in 1991 and ever since have considered being a FL/NH snow bird one day.  The FSP is a great incentive for me to make it happen at the first opportunity and will likely compel me to ditch FL residency in favor of NH.  However on a day like today, 76F/Sunny, it is hard to imagine completely cutting ties from FL.   8)



This raises a question in my mind.  Is there a strategy to get FSP folks to move to areas of NH where their vote will block the laws/taxes the towns and cities pass in the dark of the night.  The property tax on any property being one law to get off the books across NH.   
Logged

Dreepa

  • First 1000
  • Global Moderator
  • *****
  • Offline Offline
  • Posts: 5124
Re: Another property taxes question
« Reply #8 on: January 04, 2009, 09:38:00 pm »


 I will start vacationing in NH next summer to get the lay of the land. I visited there in 1991 and ever since have considered being a FL/NH snow bird one day.  The FSP is a great incentive for me to make it happen at the first opportunity and will likely compel me to ditch FL residency in favor of NH.  However on a day like today, 76F/Sunny, it is hard to imagine completely cutting ties from FL.   8)



This raises a question in my mind.  Is there a strategy to get FSP folks to move to areas of NH where their vote will block the laws/taxes the towns and cities pass in the dark of the night.  The property tax on any property being one law to get off the books across NH.   
There is no 'plan' to move to a specific area.  FSPers are spread out in many towns.

The way property tax is done in NH is slightly different than in other places.
In most towns  you vote via LINE ITEM for everything in your town.  So you know at the end of town meeting almost exactly what your property tax will be.
Logged

J’raxis 270145

  • First 1000
  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 1955
  • DILIGE·QVOD·VIS·FAC
    • Jeremy J. Olson
Re: Another property taxes question
« Reply #9 on: January 06, 2009, 07:10:07 pm »

The way property tax is done in NH is slightly different than in other places.
In most towns  you vote via LINE ITEM for everything in your town.  So you know at the end of town meeting almost exactly what your property tax will be.

What about the county and State property tax? (I thought that’s why the State sets the rates, and not the towns—because so much crap beyond the town budget has to be added in first.)
Logged

Porcupine Realtor

  • FSP Participant
  • *****
  • Offline Offline
  • Posts: 763
  • Arrived in NH on 9/03/07!
    • Mark Warden - Porcupine Real Estate
Re: Another property taxes question
« Reply #10 on: January 07, 2009, 10:50:41 am »

There is a moving van company based in Manchester that specializes in NH to FL (and back) moves:  Ray the Mover.  If you end up moving more than a carfull, you might consider them.  I know one of their managers.

It would be good for you to attend the NHLF (as mentioned previously) or Porcupine Freedom Festival (June 24-28) to see more of the state, meet some early movers, and let us try to brainwash convince you to join us, even if it's only part of the year.  We'd like to show you around.  Thanks for signing the SOI of the FSP.

When you are ready to look at real estate up here, please contact me; I'll be happy to help you search for the perfect piece of the Granite State.  I'm working with a number of out-of-state clients, including one from Saudi Arabia.

Mark Warden
Porcupine Realtor
Logged
www.PorcupineRealEstate.com
Mover #491
Allison James Estates & Homes
163 Amherst St Nashua NH 03064

Floridian

  • ****
  • Offline Offline
  • Posts: 321
  • Friend of FSP
Re: Another property taxes question
« Reply #11 on: January 07, 2009, 07:51:25 pm »

Thanks for the kind reception everyone.  The more I learn about FSP the more I like.

Great article linked on the home page:  http://freestateproject.org/node/15657

That article is a great example of how it is supposta work.  Elected officials take the heat when taxes go up.  Yes assessments will increase with property values..., but the tax rates should be adjusted downward accordingly.   The problem is when local govt sees rising property values as a revenue windfall.

Thanks and happy 2009!
« Last Edit: January 07, 2009, 07:53:58 pm by Floridian »
Logged
Tu ne cede malis.
Pages: [1]   Go Up