Room07 t1_iy35a6m wrote on November 28, 2022 at 11:44 AM

Reply to comment by E_White12 in Why can't vermont tax Airnbn by Old_Ad_1301

If you're within the income range for homestead exemptions in Vermont, non residents (and anyone) with a second home in Vermont are already paying up to double property tax on those second homes.

CountFauxlof t1_iy3g8yc wrote on November 28, 2022 at 1:39 PM

one of the huge issues with this is that the non-homestead rate includes businesses and therefor is prevented from increasing, so I believe in certain counties it’s actually lower than the homestead rate. personally I think that there should be a non-resident tax rate as non-homestead is inherently flawed and it can drive up rents.

as an example, look at Athens:

http://tax.vermont.gov/property/education-property-tax-rates

GrubSprings t1_iy3ii9o wrote on November 28, 2022 at 1:59 PM

> personally I think that there should be a non-resident tax rate as non-homestead is inherently flawed and it can drive up rents.

Taxing people based on their residency is likely unconstitutional discrimination. Three constitutional provisions, the Privileges and Immunities Clause, the Commerce Clause, and the Equal Protection Clause, may invalidate differential tax rules for nonresidents.

CountFauxlof t1_iy3iwq8 wrote on November 28, 2022 at 2:02 PM

that's a fair point - in that case I think the homestead deduction should be standardized statewide and there should be different deductions for business and non-homestead with non-homestead being necessarily taxed at a higher rate than homestead. I don't think it makes sense to group non-homestead with business/rentals.

I'm sure enforcement would be difficult.