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Breifly, in case you were in a coma over the last several days, here's what the view tax is:
1. It's not a tax. What has happened is that the value of residences with spectacular views in NH has skyrocketed due to increased demand from vacationers and wealthy retirees. Because this has become such a crucial part of land valuation in scenic spots, companies like Avitar Associates are itemizing it seperately on their valuations.
2. It taxes property, not the view. Here's where the use of the term "view tax" is insiduous. Consider this man's statement from a recent "view tax" protest:
"I came down to this meeting because I feel people in the North Country are going to be taxed to death," he said. "It could be raised at any time. If this goes on, the next thing we're going to have is a smell tax, a hearing tax. All I can say is 'See free or die.'"
Whether fortunately or unfortunately, some people in NH are in the position of have the value of their homes skyrocket. I agree that's not always good, especially when your state's main tax tool is the property tax. But those being taxed are not being taxed on their ability to see the view. They are being taxed because they suddenly find themselves house-rich.
And there's the rub. When a state tax system is based solely on property values, there can be staggering local year to year fluctuations in who bears the brunt of the tax burden. And very often, because salaries do not track with property values, people find themselves in the difficult position of being house-rich and income poor.
All this is something to be worried about, no doubt. But here's a radical idea: Why not come up with a system that balances a persons non-liquid wealth (property) against their ability to pay?
Such a system could tax property for local needs (where apples are compared to apples in the housing market), while taxing people on their "ability to pay" for the state stuff. The effect of gross disparities in the statewide housing market would be somewhat mitigated.
The first half of this system we could continue to call the property tax. The part based on your ability to pay we could call, um, I don't know...
How about calling it the "income tax"?
Actually I'm not sure how I feel about a state income tax myself. I look at this uproar, and what I see is this: a bunch of people fighting a view tax, which will in turn make it easy for New Yorkers to build second homes up here worth millions of dollars without contributing back to the community.
One of the things I like about the property tax system is we manage to tax those people, whether or not they work here.
But for those complaining about the view tax, they should be very clear what they are asking for, whether they realize it or not. They are asking for a income tax to fund education.
So stop talking about the view tax. Call it what it is: an unstable property tax. And let's start having a real discussion about what fair taxation might look like, and what sorts of economic activity we want our tax policy to support.
Or we can play cute games with tea bags. Your choice, New Hampshire.
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