AT
LARGE
Odd bits
January 20, 2005
By
Doug Cabral
Islanders are talking
At the Tuesday morning conversation, 15 or so up-Islanders gathered
at the Howes House wanted to know about French attitudes toward
American visitors, based on the firsthand account of a recent traveler.
They wanted to understand how Muslims and other non-native immigrants
to European countries such as France and Germany found life in their
new homes. Were they accepted, welcomed, shunned, treated unequally?
They were interested in immigration laws in the U.S. and Europe
and how they differed.
They wanted to discuss the attitudes of Europeans toward terrorist
acts, with which many EU countries have had long and heartbreaking
experience.
They were curious about the relationship between affordable housing,
a vigorous, growing Vineyard economy, the protection of important
environmental assets, and population growth. How might a balance
be struck that promoted business health and with it competition,
allowed for the creation of affordable housing that is not all publicly
subsidized, but restrained undesirable, unattractive, and fulsome
growth.
They wondered why there are not limits - like those applied to rooming
houses, inns, bed-and-breakfasts, and guest house - enforced against
homeowners who rent their houses serially, or even rent rooms within
the houses on a weekly basis.
They might have talked about the wind farm, but a proponent of that
renewable energy development planned for Nantucket Shoals will visit
the conservation group next month, so they deferred consideration
of that hot topic.
We're rich, we're rich
Everyone knows that real estate has increased sharply in value these
last few years. In 2002, all Vineyard geography was worth about
$11 billion. Now it's worth nearly $16 billion. We'll divide that
$16 billion owner by owner in The Tax List, an annual Times feature
which will be published next week.
On the bad side, all that rich earth has made it tough for everyday
folk to buy in, tough for small businesses to stay in business.
Tough for those who would like to pay reasonable prices for goods
and services, and tough for longtime residents on fixed incomes
who find themselves with big tax bills to pay. Who can afford $1
million for a house these days, $15,000 in real estate taxes? Well,
apparently a great many folk can, but perhaps not you or me.
On the other hand, those who have big bucks or those who made their
Vineyard bones 30 years ago have reaped the benefits. Sheer serendipity.
Also on the happy side of the ledger, the vast wealth of Island
real estate means that the six municipalities that divide that luxe
geography are each richly able to borrow money. Loan to value ratios
matter in municipal finance just as they do in home finance. That's
why we have a new school on every corner, remodeled, enlarged and
modernized as may be necessary, plus new fire barns, fire trucks,
conservation land, and on and on.
How rich are we? Well, naturally Chilmarkers, in their modest way,
lead the procession. Nearly $3 million of real estate value stands
behind each and every resident of Chilmark. Which doesn't mean your
particular Chilmark house is worth $3 million, but you can imagine
that it does.
For Aquinnah residents, $1.8 million in real estate value supports
each of you. Makes you wonder why they can't balance the town budget
or even figure out how out of balance it is.
Of course, Chilmark, with fewer than 1,000 residents, and Aquinnah,
with fewer than 400, are unusual among the Island towns. Edgartown
(3,779), Oak Bluffs (3,713), Tisbury (3,755), and even West Tisbury
(2,467) are many times more populous, which cuts the per person
value down to size. Plus, more people, more costs, bigger budgets,
higher tax rates. It's the old story.
If you are an Edgartown resident, $1.4 million in real estate stands
behind each and every one of you. Edgartown has great borrowing
power, and not only because it is extensive geographically, with
enormous length of shoreline, but also because it is very well run.
West Tisbury real estate value per capita is $1.04 million, nothing
to sneeze at. Oak Bluffs, per capita real estate value, roughly
$681,000, is slightly richer than Tisbury, $612,087, but that's
partly because Tisbury is so small, has a limited shoreline and
is largely built out. It's hard to create new real estate value
in Tisbury.
Plus, the recent municipal revaluations that resulted in these sky-high
values will certainly shift the tax burden, already disproportionately
borne by non-resident property owners, somewhat toward the high-value
properties in each town, mostly along the shore or where there is
a great view. That means that the summer folk, who own most of these
spectacular places, will pay a little bit more of the town tabs.
And because they are not residents and voters, they'll pony up the
money with no say in how it's managed and spent.
In Tisbury, to add insult to that injury, the town exempts a portion
of the value of a year-round homeowner's property from taxation,
slipping the shiv a little deeper into the vitals of the wealthy
non-residents. We may not be too fussy when it comes to questions
of fairness but then, we're rich, we're rich.
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