by Guy Page
The House on Tuesday, April 2 approved H.829, allocating $100 million/year for 10 years to improve housing. The revenue comes from higher income taxes for the wealthy and an increase in the property transfer tax for properties of $750K or more.
The bill pays for selected housing improvements by raising the income tax 34% for incomes $500K or more – from the current 8.75% to 11.75%. It’s expected to raise about $74 million/year.
Also, a 3.65% added transfer tax on properties worth $750K will raise $21 million. An PPT reduction on some lower-end properties will cost the state $3.65 million in revenue, resulting in a combined $17 million in new revenue from all PPT changes in the bill.
Key provisions of the bill include retaining and enhancing programs such as the Vermont Housing Improvement Program (VHIP), which has already rehabilitated over 500 units, and increasing investments in mobile and manufactured home parks.
A Progressive caucus amendment to require ‘just cause’ eviction was rejected 13-119.
“When you are in crisis you need to act. This bill is action to move us out of crisis,” Rep. Robin Chesnut-Tangerman (D/P Middletown Springs) said. “Voting no is not a solution.”
Minority Leader Rep. Patti McCoy (R-Poultney) disagreed and explained why:
“Raising taxes and fees, instead of funding these programs through our budget, is something I cannot support. Increasing the property transfer tax as well as the personal income tax to support these programs is something that I cannot support. My vote is no.”
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Categories: Roll Call!
the vermont pork masters have been exposed//// i hope they enjoy their 20 percent increase in their property taxes for the next ten years/// i will still be here when they are long gone//////////////
wake up key board thumpers/// a few more years of the pork masters and you will be living in a tent///
the ten year program is the police contract with the city and st. albans town/// town was given sewer allocation in this deal between town and city managers/// it was the deal of the century/// the town manager has retired and the town tax payers are left to pay the bill/// the select board voted for this////
Re: “…selected housing improvements”. I’ll say.
“Housing Improvement Program (VHIP), which has already rehabilitated over 500 units”, operates through five local Homeownership Centers in Vermont.
One of these centers, RuralEdge. serves Caldonia, Essex, and Orleans counties. This RuralEdge center has more than 60 employees with $8.4 Million in annual revenue. Its key employees earn six-figure salaries. It lists over $2.9 Million in other annual wages and benefits, which is 36% of its annual revenue.
The Champlain Housing Trust, serving Chittenden, Franklin, and Grand Isle counties, another Homeownership Center, declares more than $41 million in annual revenue. Its key employees earn six-figure salaries, plus benefits and a total of $7.3 Million in other annual wages and benefits, or 35% of its annual revenue.
NeighborWorks of Western Vermont, another center, received $2.9 Million in annual revenue. Its executive director receives more than $138,000 in salary. And the center pays out $1.19 Million in other salaries and benefits. That’s 45% of its total revenue.
Downstreet Housing & Community Development, serving Lamoille, Orange, and Washington counties, has over $6 Million in annual revenue. Its executive receives a six-figure salary. And it has $1.647 Million in other wages and salaries, or 39% of its revenues.
Windham & Windsor Housing Trust, serving Windham, and Windsor counties, has $5 Million in annual revenue. Its executive receives a six-figure salary. Other salaries and wages equal $1.6 Million annually, or 44% of annual revenue.
Okay. So, more than $23 Million goes to the salaries and benefits of people working in these five non-profit NGOs every year. The legislature wants to increase taxes and fees to fund the VHIP even more. And these legislators are bragging that they have already rehabilitated 500 units. Already? Go figure.
In the bizarre logic of our legislature we can have an $8.8 billion (plus) l budget paid for by a confiscatory income tax on earners. Of course, so many of those high income earners would be resourceful enough to move across the river to New Hampshire with a far more favorable taxation system. And in case these high income earners, didn’t understand they would also be assessed a confiscatory tax on real estate transactions on higher priced properties. The net result would be outward migration of an important economic resource.
Will they ever learn?