Dear Editor,
Although we are Florida residents, my wife and I love Vermont and spend six months a year here, enjoying the scenery and skiing.
When we bought our condo in Moretown in January 2023, we paid 1.25 % transfer tax on the property, plus a small clean water surcharge. Because of my recent difficulties climbing stairs, we’re now selling it, and we had hoped to buy a place that was a little bit bigger with no stairs.
However, I was very surprised to learn that the transfer tax to buy a property in Vermont for an out-of-state resident has now rocketed to 3.62% as of Aug. 1, 2024, including the clean water tax.
This represents a near threefold increase in the tax. And it is a bit daunting to think that I have to pay the state of Vermont an extra $8,000-$12,000 for the privilege of buying a home to live there six months a year.
My wife and I are fairly well-to-do, but we don’t waste money. I believe this tax is especially punitive and exactly the opposite of what the state needs in terms of investment. Add the transfer tax to the outrageous annual property taxes, and my head spins.
There are reasons why commercial and residential investments in Vermont are so limited. And one of them is high taxation.
Perhaps the legislature believes the ski industry is enough growth for the state, and that multimillionaires will flock to Killington and Stowe. But if you look at the other ski areas and other towns nearby, their economies don’t look too great.
When I travel to communities like Newport, White River Junction, St. Johnsbury, Bennington, Brattleboro and Rutland, I don’t see prosperity. I see dilapidated properties in so many towns, signs of downturn and economic stress. Income taxes and double-digit increases in property taxes are killing growth.
My wife and I would consider living in Vermont full-time if it weren’t for the crazy tax situation. We love Vermont and its people. But the state’s high tax burden — including state taxes and a growing number of local option taxes — discourages investment and prosperity.
Vermont’s population growth has been minimal in recent years as the state ages and struggles to attract enough new residents. On the other hand, Florida is one of the fastest-growing states in the country, and its low tax policies certainly make it attractive.
At this point, I think we won’t move to Vermont or buy another property there. And it is unlikely I will invest in media operations — my profession —in the state either.
That’s sad for my wife and me. We really love our dear Vermont.
Peter Rinaldi,
Moretown, Vt.
