A New Wave of Taxation on Second Homes
In addition to regular property taxes, state and local governments around the country are increasingly looking to second homes as suitable candidates for an extra round of taxation to increase tax revenue. Proponents also cite these taxes as a way to combat the lack of available housing in many areas by spurring absentee owners to lease out second homes and avoid the tax. Critics say these new taxes will drive away second homeowners who boost local economies and already effectively subsidize local services (i.e. schools, trash removal, etc) by not using them year-round. So far the nicknames given to these laws are more memorable than the tax laws themselves, but the variety and ingenuity of these plans could represent a worrisome Summer storm on the horizon for many second homeowners.