A fair tax system is needed for Middletown residents
It is noteworthy that most of the recent concerns about property taxes in Middletown have focused on the impact on those who need affordable housing, which may be a little misleading.
How many of those protesting the increase in their taxes actually rent property to short-term vacationers rather than local people who need affordable housing?
I personally am committed to assessing taxes in the fairest, most reasonable manner, following a few basic guidelines:
- Fairness means that the first consideration should go to all the property owners who are full-time permanent Middletown residents.
- Recognizing that the value of property differs depending on location, it is not fair to homeowners across the board to pay the same percentage as those with property of higher value.
- Furthermore, when property becomes commercial, i.e., produces an income, “fair assessment” means that the owner should expect to pay a higher tax rate as part of the commercial expenses.
- In addition, commercial property taxes are considered the cost of doing business, and those property taxes are treated as deductible expenses that reduce taxable income.
- Therefore, different classes of rental property should expect to pay different tax rates in consideration of the anticipated profit. For example: a) A series of short-term rentals (STR’s) of the same property produces the greatest profit.b) A single long-term rental (LTR) produces a lesser profit.c) A family rental generally produces little or no profit
- Consequently, the fairest classification system recognizes the difference between property with no profit margin as related to income-generated property and assesses taxes proportionally.
- These are guidelines that are the fairest to the Middletown residents, the individuals who reside permanently and individually in Middletown on their own property, and they are rules we should live by.
Barbara VonVillas, Middletown town councilor
Most Popular
Comments / 0