Quote:
Originally Posted by TiltonBB
Maybe I don't understand this correctly. If I do, I see the potential for a significant disruption in the real estate market. I know there are a lot of out of state residents who own second homes in New Hampshire.
If an out of state resident owns a summer or weekend home in New Hampshire, valued at over $500,000, and it is not their primary residence, then this legislation would seem to apply. They could have a significant increase in their real estate taxes.
If the bill passes, to avoid the tax increase, many of those people might change their residence to New Hampshire and become part of the voting base. How will that change the votes and budgets in these small towns?
I see the other unintended consequence as a lot of movement in the real estate market. People who can't or won't change to be New Hampshire residents may sell their homes to avoid the tax increase. That may result in a lot of homes, many waterfront, changing hands. That could have an effect on prices.
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If you are going to double someone's real estate taxes, I see no way that their wouldn't be an impact (and likely significant) in the real estate market. Sellers have been enjoying an environment where there are more buyers than sellers but a bill like this could flip that quickly. A lot of these homes are waterfront so we are not talking a few thousand dollars we are talking ten's of thousand of dollars. The one link shows the estimated impact and it placed it at $922.6 million (in additional revenue/taxes).