FAQ (Frequently Asked Questions)

Q. What is the Property Tax Levy?

A. Revenue comes from several sources:  state payments, licenses and fees, fines etc. All these funds are subtracted from the budget and what's left over is the property tax levy.

Q. Do we have to revalue property?

A.  Properties change value over time. Without revaluation new owners will pay taxes based on older and usually lower values.  Revaluation provide a fair tax rate based on market values so new owners can be fairly taxed on current values.

Q. As a homeowner, will my taxes be lower under the R.I.G.H.T. proposal?

A. In a word, no.  Under the R.I.G.H.T. plan all owners will get tax increases but only enough to pay for the tax levy, not a penny more.   Today, with revaluation for everyone, thousands of owners get lower taxes which must be paid for by other owners who get tax increases much greater than they should. This will stop. When a tax levy goes up, no one will see their taxes go down.

Q. What happens when I sell my home?

A. The buyer and you agree on a price. The first year's tax bill for the new buyer is based on the current assessed value of the home and the tax rate in force at the time, similar to the present practice. Subsequently new owners become existing owners and taxes will be levied according to the same percentage guidelines as for every other property owner.

Q. Won't new buyers resent paying a higher tax than someone living in a similar house?

A. New homeowners currently pay the traditional ad valorem tax and this will not change.  People living in similar houses might pay different taxes as we do when we pay our state taxes and our federal taxes.  There is nothing unfair or unprecedented about it.

Q. Doesn't this mean that people in identical homes might have different tax bills?

A. It does, and this bothers some people. Think about this. People with identical incomes often pay different income taxes. Identical incomes don't mean they are the same. Likewise, identically valued homes does not mean the owners are the same.  A person assessed into a $300,000 home might be unable to afford to pay $300,000, but the new buyer obviously can. Still, they are taxed the same, perhaps even forcing the existing owner to sell.

Q. What if I leave my home to my family when I die?

A. Transfer to a spouse who continues to occupy the property will result in no change at all. Transfer to anyone else, be they children or not, will be considered to be a sale and the property will be revalued in the same way as any sale.

Q. What if property values decline?

A. Your taxes will depend on only two things: 1. what your property value was last year and 2. what the budget needs are.

If the budget goes up, you and everyone else pay more. If it goes down, everyone pays less. And the percentage change is the same for everyone. Once you have purchased your home, any change in its market value has no effect on what you pay in property taxes. (see next question).

Q. Will this plan lower the value of my home?

A. Absolutely not.  The R.I.G.H.T. plan uses Taxable Values not market values for taxing purposes only.  This has no bearing on the market value of a property.

In fact, predictability of future taxes for new owners might even increase the value of your home if you decide to sell.

Q. Are home improvements taxed?

A. Improvements are taxed by adding the traditional ad valorem tax on the improvement to the R.I.G.H.T. tax. If a physical change results in a decrease in value the property may be reassessed and a new base tax established.

Q. What does progressive mean?

A. A progressive system places a greater burden on those who have greater resources.

Q. Is the R.I.G.H.T. plan progressive?

A. Yes. Tax bills for people who purchase more expensive homes are greater than those with less expensive purchases made at the same time and remain so.

   Today's system is not progressive and can even become regressive when a less costly home rises in value more rapidly than its more expensive counterpart.

Q. What makes the R.I.G.H.T. plan different from the current system?

A. The R.I.G.H.T. plan difference becomes apparent after a person purchases his home. Once a fair tax bill is established, according to the value of the property at the time of purchase, any future changes in the tax bill, are in direct proportion to changes in the town budget. Everyone shares the cost and everyone is treated in the same way.

   When budget needs increase, everyone's taxes increase by the same percentage. No one will get a tax reduction as happens regularly under the current revaluation system.