The Tax Man Cometh...

[Skooter]

So did anyone else receive a little note in the mail from the fine Town of Moultonborough with their brand "new" property valuation?

Not sure what they are thinking but several of the valutions I saw are a good 20-25% higher than what the properties can be sold for...

Anyone else seeing the same thing??

[dpg]

I received one on a SMALL single lot in Moultonborough. It's very tiny and questionable as to whether it's even buildable, I know because I had some septic/perc test people look at it this summer. The valuation was in the low forty thousand range, ya right!!

[Lakegeezer]

Yeah, appraised about 20% above my wildest dreams.

[Lakegeezer]

The Moultonboro propery values are on-line at http://data.visionappraisal.com/MoultonboroughNH/ (you need to register)

I put the values of nearby properties into a spread sheet, and it turns out land is considered worth over 1 million per acre.

0.2 acres are valued at 404300 or 2 million / acre
0.3 acres are valued at 453600 or 1.5 million / acre
0.4 acres are valued at 492800 or 1.2 million / acre
0.5 acres are valued at 531000 or 1.0 million / acre
0.6 acres are valued at 633500 or 1.0 million / acre
0.7 acres are valued at 680300 or 1.0 million / acre

Land values are valued very consistantly based on land size.

House values have a wide range, from $57 to $224 per square foot of living area. Size ranges from 600 SqFt to 2900 SqFt

The values seem unrealistic unless prices rise to meet the assessed value. It will be interesting to see what the tax rate ends up to be. Those without million dollar acres get a free ride in Moultonboro. I suspect the elderly on the street that bought in the 50's are wondering if they will be able to keep the place.

[phoenix]

Is the town alledging that the assessments are full value meaning all properties are what they would sell for. Many times re-evaluations are at some percentage of likely selling price. My property which we bought last Decmber was assessed at nearly the same price which is fair if all properties at assessed similarly

[TomC]

I, too, am curious about what the actual bill increase turns out to be....

[fatlazyless]

All the different town have to submit their assessments to the State for certification. The State now requires that the assesse values should be between 90 and 110% of the fair market value. Also the towns are required to reassess at least once every our years or more freqently. The assessing process is supposed to be part of a state wide tax system that is equal all across the state just like the 8% hotel & meals tax is the same 8% all across the State.

Here's a not too related tax question for anyone. At the Super Market in Centre Harbor, how come a $1.09 chocolate whoopie pie does not get this 8% tax while a chicken salad sandwich does. Both are wrapped in plastic, and are labeled but just the sandwich gets taxed. Seriously here, no foolin' aroun here; capice(!), this is a very serious business, so WHY is that? What is what, like how come?

[DoftheMattysort]

The reason is simple. The aformentioned sandwich is taxed due to the fact that is was handmade and then sold as a prepared meal (I'm going to use my $120,000 worth of college education and suppose it was meant to be lunch.) The Whoopie Pie, most likely sold as a multi-pack, was constructed by machine and not intended to be a meal (Most likely the "hold me over until dinner" part of your day.) So, in review the sandwich is a culmination of ingredients hand picked and assembled to create a meal and the whoopie pie is not a hand prepared meal which solves the mystery.

[Skip]

Originally Posted by fatlazyless

Here's a not too related tax question for anyone. At the Super Market in Centre Harbor, how come a $1.09 chocolate whoopie pie does not get this 8% tax while a chicken salad sandwich does. Both are wrapped in plastic, and are labeled but just the sandwich gets taxed. Seriously here, no foolin' aroun here; capice(!), this is a very serious business, so WHY is that? What is what, like how come?

Since you have asked this question many times, here's the appropriate RSA explaining same....

TITLE V
TAXATION
CHAPTER 78-A
TAX ON MEALS AND ROOMS
Section 78-A:3
78-A:3 Definitions. – As used in this chapter: ....

X. The following terms have the meaning as stated:
(a) "Meal' means any food or beverage, or both, prepared for human consumption and served by a restaurant, whether the food or beverage is served for consumption on or off the restaurant premises. The term "meal' includes food or beverages sold on a "take out' or "to go' basis, whether or not they are packaged or wrapped and whether or not they are taken from the premises of the restaurant. The term "meal' excludes any food or beverage wholly packaged off the premises except: (1) sandwiches of all kinds; (2) beverages in unsealed containers; and (3) catered meals or meals which are delivered to the location where the meal is consumed. Beverage includes an alcoholic beverage, served with or without food.
(b) "Restaurant' means an eating establishment where food, food products, or beverages including alcoholic beverages are served and for which a charge is made. The term includes, but is not limited to, a cafe, lunch counter, private or social clubs, cocktail lounges, hotel dining rooms, catering business, tavern, diner, snack bar, dining room, food vending machine, and any other eating place or establishment where meals are served, even if the serving of a meal is not the primary function of the establishment such as but not limited to convenience stores, gas stations, or supermarkets, but only as to the portion of such establishment that serves a "meal' as defined in this chapter. The term includes eating establishments whether stationary or mobile, temporary or permanent.
(c) "Taxable meal' means any meal for which a charge is made that is purchased from a person in the business of operating a restaurant, and which is subject to a tax under RSA 78-A:6. The following are not taxable meals:
(1) Meals served or furnished on the premises of a nonprofit corporation or association organized and operated exclusively for religious or charitable purposes, in furtherance of any of the purposes for which it was organized; with the net proceeds of the meals to be used exclusively for the purposes of the corporation or association;
(2) Meals served or furnished by an organization operated for educational purposes, which organization is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code, either directly through facilities owned and operated by such organization or indirectly through a catering or food service enterprise under contract with such organization, but only if such meals are served or furnished:
(A) To students regularly attending the organization;
(B) To employees, faculty members or administrative officers of the organization;
(C) To volunteers providing services in connection with the organization; or
(D) To persons other than individuals described in subparagraphs (c)(2)(A), (c)(2)(B), or (c)(2)(C), but only if the meals are served or furnished pursuant to an activity which is related to educational purposes and the sponsor of such activity is an organization exempt from federal income taxation under section 501(c) of the Internal Revenue Code or the federal or state government of an instrumentality thereof. For purposes of subparagraph (c)(2)(D), "educational purposes' means:
(i) The instruction or training of an individual for the purpose of improving or developing the individual's capabilities;
(ii) The instruction of the public on subjects useful to the individual and beneficial to the community; or
(iii) With respect to a specific educational organization, the conduct of alumni, student or athletic functions or events.
(E) The exemptions provided by subparagraphs (c)(2)(B) and (c)(2)(D) shall not apply if the meals are served or furnished at a location where meals are offered to the general public on a regular and continuous basis without regard to an activity which is related to educational purposes.
(3) Meals served or furnished on the premises of any institution of the state, political subdivision of the state, or of the United States, to inmates and employees of the institutions;
(4) Meals served or furnished on the premises of a hospital and served in any hospital licensed under RSA 151, except for meals sold in any restaurant which offers its accommodations to the public, or of a sanitarium, convalescent home, nursing home, or home for the aged;
(5) Meals furnished by any person while transporting passengers for hire by train, bus, or airplane if furnished on any train, bus, or airplane;
(6) Meals furnished by any person while operating a seasonal camp for children under the age of 18 years, to the campers under the age of 18, and to employees, but to no others;
(7) Meals prepared and sold by nonprofit organizations other than educational institutions. However, if the nonprofit organization is required to have a license issued by the liquor commission other than licenses issued pursuant to RSA 178:22, V(l) for 3 or fewer days per year, the meals are taxable meals;
(8) Meals furnished to any employee of an operator as pay for his employment.
(9) Dispensing of a beverage by a single serving beverage machine where not used in conjunction with other food vending machines such as, but not limited to, commissaries. A single serving beverage machine used to dispense a beverage consumed in conjunction with a meal under the definition of restaurant shall, as to the beverage being dispensed, constitute a taxable meal;
(10) In accordance with the Food Security Act of 1985, meals purchased with food stamp coupons issued under the Food Stamp Act of 1977, as amended; provided, however, that when a meal is purchased in part with food stamp coupons, then only that part of the meal purchased with food stamp coupons is not a taxable meal.
XI. [Repealed.]
XII. "Gratuity' means a gift of money in return for a service.

[fatlazyless]

Thankyou Skip for posting this rsa. I plan to read it about twenty times, sometime in the future. Now, the Hannaford Stores will charge the 8% tax on five bagels but not on six bagels because five bagels are a snack while six bagels are a meal. I wonder what the thinking as determined by this rsa was on this five vs six bagel tax-free zone?

[SIKSUKR]

HA Ha HA! Oh Les you kill me!It's good to see your curious humor posting here again.Your example brings to mind a similar scenario I encountered while renting a skihouse for the winter a few years back.If we rented the house for 5 months and 29 days,we would be charged the room and meals tax.Rent it for 6 months and there is no tax.I guess it's not a"rental room" after 6 months but becomes a lease. SS

[kchace]

Yup, got one of those little "letters" from the town on the land I bought this past year. Guess I can't really complain when their valuation is less than I paid for it.

Ken

[MaryS]

Hi folks...as a home owner in Moutonboro where a large number of us are not primary residents...have a vacation cottage, we don't have any opportunity to vote on the budget/tax rate/school spending etc....Moultonboro enjoys tax revenues with a significant number of owners not using the services....Do any other towns have some voting right when we pay the local taxes??? any talk of changing this.....Here in my CT town on town issues. referendums and budgets votes, all property owners have the eligibilty to vote. Any history and regulations on this would be helpful.....It just seems that only a few decide on local spending not the vacation home owners who provide a huge tax income for the town.

[DigitalJohn]

Just received an e-mail. The tax rate is $7.99/1000

From the Tax person

"At long last we have the tax rate confirmed. It is $7.99 per thousand dollars of your new valuation.

I am not sure when the bills will be mailed as the Selectmen's Office is having trouble bridging the new assessed values over to my taxing program. I hope to have them in the mail by November 24th, with a due date of December 27th."

[BroadHopper]

Point taken. The lakes Region is where there is a large percentage of the land owners that do not use all the services because it is seasonal. That is Killington's beef.
Maybe we can join forces with Killington Vt. and create out own state!

[Just Wonderin]

Originally Posted by DigitalJohn

Just received an e-mail. The tax rate is $7.99/1000

When you received the e-mail, did it indicate when the bills will be sent out? Or more importantly, when they will be due? Typically bills go out in the middle to end of October and are due December 1. I hope they don't expect the bills to still be paid by the 1st. Any insight would be greatly appreciated.

[Misty Blue]

I'm a "townie" from Moultonberry and I must agree that the property owners are getting the short end of the stick.

I can see not allowing a property owner, as opposed to a resident, to vote. After all you vote in your own town. I do feel, however that any taxpayer should have a right to speak their mind, voice an opinion, maybe give some advice. You just might have an idea or two that we hadn't thought of.

The real issue is value. Even the locals get very little for their tax dollar. Lets see...No town water...No town sewer...No trash collection...largely a volunteer fire department (awsome folks!). If it was not for our school (by the way thanks folks!) and our large police force we don't get much at all for that $7.99.

PS FLL...Your issue is not the 8% tax. It's paying $1.09 for a whoopie pie! Geez. It would take a "dealer in most everything" to charge that!

[Lakegeezer]

The taxation without representation bill arrived today. 12.5% increase in our actual taxes. If only my income would rise at that rate.

[phoenix]

received my little love letter from the tax man also today

[HUH]

35% increase here in gilford.. Its out of control !!!
This cant be ... What happened to "Live free or die"
We need a new school , we need a new police station , we need a new library, we need new ball fields, we need to spend your money to outsource a study on how we should spend your money ... Im realy sick of this !!!

[DigitalJohn]

Originally Posted by HUH

35% increase here in gilford.. Its out of control !!!
This cant be ... What happened to "Live free or die"
We need a new school , we need a new police station , we need a new library, we need new ball fields, we need to spend your money to outsource a study on how we should spend your money ... Im realy sick of this !!!

"It's Live Free AND Die" this is the price of no broad based tax, also in Moultonboro, the taxes go up at a double digit rate excluding the state school tax, but they have nice schools, police station, fire station, much better than my town in MA has. It's nice to have people like us that don't vote that you can soak.

[Lakegeezer]

Sorry DigitalJohn, I disagree with half of your reply. Broadbase taxes would add more money at the state level to be spent by the wealthy governors we tend to elect. More money, more ways to spend it. Budgets go up, local taxes stay high. Broadbase tax is only a way to provide more services, not reducing taxes. Keeping the money local is the NH advantage, because it is more difficult for special interest groups to get funds when they have to go to each town. The courts attacked this advantage, thanks to the lawsuit that the welfare towns of Franklin and Claremont filed. Now, the state adds a tax and plays robin-hood, forcing rural towns like Moultonboro to help fund sewer systems and baseball fields for Manchester. The real problem is the lack of accountability by those at the local level. They can spend on those who live there year round, and fund it from those who can't vote on local issues but pay more than their share of taxes. Taxation without representation is the issue.

[phoenix]

I have less concern with the schools in Moutonboro than the sewer in Manchester. As many town that have a large seasonal property base and tax that base, the state is doing the same thing. It has real funding problems and rather than fix it more permanently ,they also tax the Moultonboro summer people. LG understand your point but hopefully this governor who has an education background will find a fairer way to raise education money

[PROPELLER]

Phoenix, no he doesn't. I have e-mailed his office several times. His only response is to raise cigarette tax, thats it. He will be no different than any of the other govenors.

[HUH]

Its the locals that need to be riegned in.. Non voting taxpayers are "the goose that laid the golden egg" ..
Gilford is builing a New high school, police station and library ..but there is a pothole the size of a swimming pool in front of my house !!

[fatlazyless]

From the latest Waterville Valley Wig Wag that comes out every month: the recent reassessment done by the Nyberg Purvis Co, a certified assessor, has raised all property in Waterville Valley an average of 43% from 2003-2004. One home that has been for sale for a year for 550k has been valued at 750k. It had been 12 years since an assessment and not just a percentage adjustment was done last.
Now, all NH towns are required to reassess at least every five years as the result of a City of Portsmouth vs State of NH lawsuit over education funding that was tried in Superior Court and appealed in NH Supreme Court in 2001.

[itchin for fishin]

To make some of you feel better, they're banging us close to $20 per $1000 of full assessed value in Nashua. Does Molty have a $7.99 rate? I'd love that.

[PROPELLER]

Gilford changes assessments based on recent sales apparently, without doing a full scale reassessment by certified assessor. My tax bill has shown an increase in the assessed value on more than 1 ocassion since 2001 including the most recent 1 I received yesterday & it always is changed to nearly exactly the amount of a recent sale right next to or near me. Its tough to complain about an assessed value if that is what you can sell it for. Its the per thousand rate & how the town manages & spends the money that may need scrutiny.

[HUH]

I dont mind paying assesed value (as long as its not fluffed). But its the way the town spends the money.. Theres nothing spent on infrastructure its 95% payroll for the town employees who gave themselves a nice merit raise across the board..And they all want new facilities to park thier fat butts in every day .. PAVE MY DAM4 STREET

[mcdude]

From the Laconia Citizen

[HUH]

I was there ..Darn near to a Revolt ! I dont think they will get any big projects passed for a while around here ..

[Charlie T]

I have a home in Gilford that I purchased 3 yrs ago. The tax's have gone from $3400 to $4700 in that time. This has to stop. Will the people running the town not be happy until everyone is taxed out of their property

[HUH]

They were standing in the hall tue. night ..The selectman got an earfull.. Everyone has had it with the spending and subsequent tax increases..
New police station out for now
Library expansion off the table for now
School budget is getting some serious scrutiny as well as the merit and COL raises..
Yes the spending has been out of control and has to stop..

[PROPELLER]

Charlie, I do not live in Gilford but I also had similar increases in property taxes in another NH town an hour south of the lake. I am paying almost $5000. My parents live in a Mass town & they have had increases similar to yours. This issue is not limited to just Gilford or the lakes region or NH, its everywhere. You are not alone.

[DigitalJohn]

Well, all of us making over $200k(sic) got a real nice gift from Pres. Bush, so we have the money to pay for increased local taxes and more!

[GWC...]

Originally Posted by DigitalJohn

Well, all of us making over $200k(sic) got a real nice gift from Pres. Bush, so we have the money to pay for increased local taxes and more!

That was the reason for the refund - put the money back into the economy to jump-start it and hopefully keep it going.

P.S.- Thanks for the foodstamps. My tummy is happy, again.

[SAMIAM]

As a life long conservative.....I've now changed my tune. We need a sales tax........We have lost 3 retired homeowners on my road alone who could not afford the huge increases on waterfront property.Please keep in mind,these are not wealthy people,just ordinary folks that happened to buy on the lake many years ago.Oh,I know,their property has grown in value,but what good is that to them? They don't want to sell,just live their remaining years in the home the've lived in all of their lives.

[PROPELLER]

I do not think a sales tax or income tax is the answer. If there was a sales tax or income tax a municipality is not going to lower your assessment because the value of your home is not reduced magically because the state is now collecting an additional tax. Even if a municipality lowered the per thousand rate, what would it be maybe $2 per thousand? On a $600,000 home (what many lake front houses go for) thats $1200. So in Gilford where the rate is approximately $17 per thousand it would be reduced from $10,200 to $9,000. Is that going to make the difference whether someone stays or goes? I doubt it. $9,000 is still a large tax bill. And thats if a municipality decided to lower the rate. I doubt they would because when given money they will find another way to spend it.

What guarantee is there that the new tax whether it be sales or income tax is going to be distributed among the towns. A sales or income tax is collected by the state. No, I would not be so naive to believe that a sales or income tax will elleviate this problem. TAXES NEVER GO DOWN. And just remember once they get a sales or income tax, now you will be paying high property taxes & an additional tax or taxes (sales or income)

[phoenix]

still don't like paying for schools in amherst NH

[HUH]

Originally Posted by PROPELLER

I do not think a sales tax or income tax is the answer. If there was a sales tax or income tax a municipality is not going to lower your assessment because the value of your home is not reduced magically because the state is now collecting an additional tax. Even if a municipality lowered the per thousand rate, what would it be maybe $2 per thousand? On a $600,000 home (what many lake front houses go for) thats $1200. So in Gilford where the rate is approximately $17 per thousand it would be reduced from $10,200 to $9,000. Is that going to make the difference whether someone stays or goes? I doubt it. $9,000 is still a large tax bill. And thats if a municipality decided to lower the rate. I doubt they would because when given money they will find another way to spend it.

What guarantee is there that the new tax whether it be sales or income tax is going to be distributed among the towns. A sales or income tax is collected by the state. No, I would not be so naive to believe that a sales or income tax will elleviate this problem. TAXES NEVER GO DOWN. And just remember once they get a sales or income tax, now you will be paying high property taxes & an additional tax or taxes (sales or income)

Actually the majority of your local taxes go twoards school funding due to a state mandate.. A sales tax could relieve this pressure substantialy.. And tax rates do go down ..the Gilford rate has dropped from 23 per K to 16.66 per K over the past 4 years..
Noone is arguing their assesed value ..its local spending in Gilfords case.. The cost of town employees and their insurance , merit raises, cost of living increases etc ..They keep proposing New police station , new Library, bigger school etc etc .. Well I think the spending spree is over.. Noone will vote to spend another nikel after getting the recent tax bill ...

[ITD]

Sorry people, the mentality that says a sales tax or income tax will solve the problem is the problem. If you think adding another "revenue source" will lower your property tax, I have a bridge you can buy, cheap.


Control the spending!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!

[PROPELLER]

To HuH, the only reason the rate went down in Gilford & any other municipality for that matter is because they increased assessments considerably. THATS THE ONLY REASON. If the assessment does not change the rate will creep back up again. Mark my words.

Listen to ITD, do not be duped!!

[fatlazyless]

Only NH & Alaska out of all the states have both no income or sales tax. Why is that? Alaska has a small population and a lot of oil wells, enough so that after a one year residency, Alaskans receive a reverse tax, the Alaskan oil dividend, paid by companies like ExxonMobilTexacoConocoBPShellArco through their property taxes.

What has NH got? NH has lots of waterfront and mountain vacation homes and that are close enough to Boston. These vacation homes 'get drilled' just like the Alaskan oil for taxes. The money comes in from "away" and if someone cannot afford the taxes and has to sell then 'so be it, it don't matter who owns it really.' For the NH voters it is 'better them than us' to be paying. Now, ain't that right?
Only now, with the rising assessments of year -round regular type homes plus with the new mandatory five year full-value assessments performed by a certified assessor, there is a new wrinkle. So, how do you all like this new wrinkle?

[SIKSUKR]

Originally Posted by HUH

And tax rates do go down ..the Gilford rate has dropped from 23 per K to 16.66 per K over the past 4 years..

I don't know what the case is in Gilford,but a tax rate going down usually doesn't mean anything.The question is has the total property tax your paying increased?I bet it has because of reasessment.ITD and Propellor are right on this one.SS

[ghfromaltonbay]

Don't believe it if you think these new taxes will be the answer. Here in NJ we have an income tax, 6% sales tax and were told that the gambling in Atlantic City would answer all our problems in subsidizing education and prescriptions for the elderly. Baloney!! My property taxes on a small 3 bedroom cape (1500 sq. ft) on a 47x100 foot lot have gone from $2400 per year (1990) to $5200 this year. The assessed value of my house is approx. $145,000 although in this crazy market I could probably get closer to $300K for it. I can't imagine what's going to happen if they do a reassessment which I don't believe is far off. They want to build 2 new schools in this city and I cringe at what that will do to our taxes. Adding new taxes won't help so don't believe that a sales or income tax will be the answer.

[HUH]

No new taxes are never the answer ..nor do they ever go away..
I find it most fo the people who dont want a sales tax in NH are from out of state ! Gee what a surprise ..

[phoenix]

still basic problem is the courts have ruled that all school districts must provide an addiquate level of education to all students in the state. the state approach is to tax donor towns( primarily towns with high valuation like lake towns) and give that money to so called poorer towns . unfortunately towns like Amherst are also getting that money . This is a state wide tax and pits one town against another. State needs to find a better way to raise this money whether by putting a sales tax or increasing some other revenue. Cutting education would cause the people who filed the lawsuit to go back to court . Bottom line is something must happen at the state level this year

[fatlazyless]

I have read that the teachers and their spouses at Inter Lakes High School in Meredith which teaches students from Meredith, Centre Harbor & Sandwich receive health insurance for life. According to a news short in the Foster's Daily Democrat, this is done no where else in the state and it last cost $345000. Compared to the many retirees across the country who get switched over to Medicare at age 65, this is quite a benefit. Ho-hum, oh well, what-can-one-do, just pay those taxes and forgit it, you can't fight city hall, ho-hum!

[phoenix]

see that the new governor has proposed to do away with the state wide property tax for education . Will raise cigarette taxes and provide money to the neediest towns not towns like Amherst who have high income but lower property assessments. This should really help many of the lake towns such as Moultonboro who have been giving $4M per year to the state. I understand that towns who will lose are banding together to fight but the plan seems fair

[PROPELLER]

It still does not adress the original problem that came out of the Claremont decision. And that is property taxes should not be the basis of funding education. Now we are right back to where we started. If and when the statewide property tax portion of the property tax bill is eliminated, the school portion of the property tax bill will go up to make up for what is lost from the statewide property tax & property taxes are still the major source of funding education.

[jonr]

Originally Posted by SAMIAM

As a life long conservative.....I've now changed my tune. We need a sales tax........We have lost 3 retired homeowners on my road alone who could not afford the huge increases on waterfront property.Please keep in mind,these are not wealthy people,just ordinary folks that happened to buy on the lake many years ago.Oh,I know,their property has grown in value,but what good is that to them? They don't want to sell,just live their remaining years in the home the've lived in all of their lives.

What good is it to them? Well there are a number of ways to monitize the increase in your homes value. There are convential mortgages, home equity lines, and reverse mortgages (which require no payments during your lifetime).

If values increase then you have la lot of equity to tap to pay the increased tax. If your house increases by $1000 and you only need to monitize $10 to $20 to pay the taxes (depending upon the town).

But the assessments are only one issue. If everyone's assesment doubles and spending is the same then your taxes don't change. If some properties increase more or less than others that will shift the tax burden to the properties that increase more. If spending increases 20% then without additional revenue agregrate taxes need to increase 20%.

[fatlazyless]

Tomorrow June 22 2006, the State of NH represented by the NH Attorney General is scheduled to have its' appeal concerning the state wide local school property tax heard by the NH Supreme Court. Earlier this year in a lawsuit involving the Town of Londonderry and some other towns, a superior court agreed that the state wide local school property tax was unconstitutional. The State of NH's appeal of that decision starts tomorrow to be heard by the five Supreme Court justices.

Here's my question. Now, the Meredith property tax which includes a local municipal, local school and county tax is due on Monday July 3. What happens if I pay the local school tax on July 3 and then say three weeks later, this tax is decided to be unconstitional? Another question: what happens if I do not pay the local school tax and it is say three weeks later decided to be unconstitutional?
In my opinion, it seems to me that a past due local school tax that has been declared unconstitutional is no longer owed to the town. However, the interest on the amount not paid is due because the tax was legal at the time it was due. An unconstitutinal decision by the Supremes would would make collection unenforcable since it's an illegal tax even though it was legal at the time it was due.

How's that sound?

[phoenix]

i think you will need to pay and get a refund. I think from what i hear any chnage will be in the future and not retro so won't impact this year anyway