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Board of Finance explores a variable mill rate and requests data on seasonal and non-owner-occupied homes
Summary
Members discussed a variable mill rate (higher rates for non-owner-occupied or higher-value properties) and asked the assessor for counts of seasonal and non-owner-occupied properties and for a grand-list decile breakdown to evaluate distributional effects before pursuing policy changes.
Board members raised the possibility of a variable mill rate that would increase taxes on non-owner-occupied or especially high-value properties while potentially reducing rates for owner-occupied homes. A member cited other jurisdictions and a tiered model used elsewhere and said the board should first collect accurate data before pursuing policy options.
The assessor (Lambert) provided a seasonal-property count of 431 and agreed to supply counts of non-owner-occupied properties and decile breakdowns of the grand list. A member said non-owner-occupied properties represent more than 25% of parcels by count in some areas and suggested the town’s second homes are a significant local resource worth examining for any policy shift.
Why it matters: East Haddam has a limited commercial tax base and relies heavily on residential property taxes to fund education; members said evidence and distributional analysis are needed to decide whether a variable mill rate or a value-based surtax would be equitable and effective.
Next steps: the board asked Lambert to produce data on non-owner-occupied and seasonal properties and directed staff to obtain grand-list decile data and top-taxpayer listings from audit reports to model impacts.
