From House Calendar Feb 6th....HB 1580-FN-LOCAL, relative to the taxation of non-primary residences. MAJORITY: INEXPEDIENT TO
LEGISLATE. MINORITY: OUGHT TO PASS WITH AMENDMENT.
Rep. James Tierney for the Majority of Ways and Means. This bill proposes to tax non-primary residences.
Non-primary residences are defined as “any residential property, including single-family homes, condomini-
ums, or mobile homes, that is not the owner’s principal place of abode.” The test for residency is different
than residency in other statutes. Enforcing this proposed law could be difficult and problematic. Public tes-
timony was very much opposed to this bill. Why should a property owner have a higher tax simply because
he/she chooses to own investment property or a vacation home? Additionally, this may be unconstitutional,
as they would be taxed differently than other homes. Vote 16-3. Rep. Thomas Schamberg for the Minority
of Ways and Means. This bill seeks to open a new revenue stream by taxing non-primary residences valued
over $500,000 that are left unoccupied for more than 183 days out of the year at a rate of three quarters of a
percentage point. The minority of the committee recognizes the legislature looks to find alternative revenue
that shifts the tax burden away from the over-reliance on property tax. The minority believes that this is
a small step towards the goal of finding a new form of revenue that moves the state away from property
taxation without implementation of broad-based taxes. This bill mandates that all monies raised go directly
back to the community in which it was raised to be used for the specific purpose of reducing local municipal
taxes. The minority of the committee believes that at a time when many of our citizens can’t begin to afford
one home and our state is saddled by ever rising property taxation, a new revenue source from non-primary
residences left unoccupied for more than 183 days out of the year is appropriate.
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