PLUCKING THE SILENT GOOSE Issue # 31
March 4 "The art of taxation consists in so plucking the goose as to get the most feathers with the least hissing." Jean Baptist Colbert, attributed
Given the recent disclosures of Burlingame multi-million dollar mismanagement, millions in real estate speculation losses, a bloated City budget and the abuse of City employee p-cards and bonus plans, we've been getting a lot of questions from full-time locals and part-time residents alike on how to have a more effective voice in our local government.
Part-time residents, including seasonal residents and second homeowners are not well-represented in our local democracy. Particularly for second homeowners who pay the bulk of local property taxes, being continually tapped to fund local programs and projects is not so much the issue as not being able to participate in the process. They clearly are the lifeblood of most of the Valley's non-profits, as well as property tax-funded activities. Seasonal renters and workers are also making great financial and personal contributions to our lifestyle here. According to an economic white paper recently commissioned by the City, local residents only pay 10% of the sales taxes which go into the general fund. Second homeowners, part-time residents and visitors contribute 90% - over $15 million in 2008, not including lodging tax revenue. The contribution of part-time residents is quickly forgotten when we local voters (the beneficiaries of all of this funding) go to the polls and continually vote to heavily tax our part-time fellow citizens. THOSE PESKY SECOND-HOMEOWNERS -Given the small voter pool and the enormity of local government issues, your vote REALLY counts in Aspen and Pitkin County! For example, in May 2007 when Mayor Ireland was elected in a run-off, just over 2000 people voted. (Mick won 1209-913.) Clearly, these are not large numbers. A few votes can mean a lot. -In May 2009, Mayor Ireland's, Councilman Jack Johnson's and Councilwoman Jackie Kasabach's seats are up for re-election. (Councilmen Skadron and Romero have two more years in their terms.) -With the recent extension of the Real Estate Transfer Tax (RETT) until 2040, City Council will likely be asking for a $100+ million bond to fund the completion of the troubled Burlingame not-so-affordable housing project on the November 2009 ballot. -The redevelopment of the Lift One area of Aspen Mountain may be on the May 2009 ballot, as Council recently punted its decision-making to the voters. -The S-Curve entrance to Aspen issue is likely to be on a 2009 ballot. -Again, Mick and Jack will likely be running for re-election in May 2009! -The "keep taxing the property purchasers/owners, retail customers and visitors to fund our lifestyles" mentality here has been going on for far too long. The us vs. them division is not healthy for our community, nor is the attitude that we locals are entitled to government subsidies for housing and special retail and restaurant establishments. It is appalling. You can contribute to the end of this nonsense by voting. -Tax measures on the local ballot pass regularly -- in the Nov 2008 election, local voters approved raising the sales tax 0.1% for a healthy rivers and streams fund AND raising it another 0.4% (plus a $44.5M debt authority) for RFTA buses, bus stations, etc. -A retail purchase in Aspen now carries a 9.1% sales tax (2.2% to the City, 2.9% to the State, 0.4% for RFTA, 3.6% to the County). Lodging is an additional 1%. Given the taxation trend, this will only continue to creep upward. -Check with your tax advisor - Colorado income taxes are lower than in many other states. -Did we say that Mick and Jack will likely be running for re-election in May 2009? -a citizen of the United States, and -18 years old by Election Day, and -a resident of Pitkin County for at least 30 days prior to an election and consider Pitkin County your sole legal place of residence http://www.aspenpitkin.com/pdfs/depts/45/FoodTaxApp08.pdf
For example, in recent years, voters have collected millions of dollars from our part-time residents and visitors to fund the construction of the Aspen Recreation Center (which cost $20 million in 2003), plus the annual City subsidies for the ARC originally budgeted to be $300,000 that now approach $1 million a year! And that's not to mention the $22 million dollars collected by the RETT upon each and every real estate transaction since 2003 that were to go toward affordable housing. (Never mind that the current leadership has all but bankrupted this fund, although we have no more housing to show for it! See "Aspen's Land Banking Needs a Bail-Out"Click Here--Issue #28 )
"The City subsidizes second homeowners." They "do not pay their own way," when they build or buy new homes, Councilman Johnson declared at the February 17 Council work session. He and Councilman Skadron stated that Mayor Mick had convinced them that second homeowners employed an average of FOUR full-time equivalent employees (FTEs)
per household, hired to maintain their property and perform personal services there! Hence, their thinking goes, the City should consider taxing second homeowners in the form of housing mitigation fees (that is $2 million, using their assumption of housing employees at $400,000 to $500,000 per unit affordable housing subsudy) for any new home constructed or redeveloped.
Adding $2 million to the price of the average new home was described by Councilman Skadron as immaterial to new second homeowners!
Johnson declared that the City is giving the second homeowners a "huge subsidy" by housing employees, and their money is "not participating in our economy." Given that 2nd homeowners and visitors pay 90% of the bills, including the salaries and benefits of Council, we simply don't understand the logic (if it can be considered logic).
Throughout his term, Mayor Mick has frequently vilified second homeowners. In fact, in today's Aspen Daily News, Mayor Mick declares that second homes do have impacts on the community that must be recognized and "dealt with."
Unfortunately, Council is so out of touch with reality and the second homeowner community. So, we'd like to share with them a sample of more realistic data. If you are a second homeowner or condo owner, please take our anonymous poll, and estimate the number of hours of maintenance/personal services/property management you pay for in an average week.Click Here for One Question Poll
From your many recent comments, we are acutely aware of your desire for representation in local matters and your frustration at not having a voice in Aspen politics, specifically on the often frivolous and reckless use of your tax dollars - and you can bet that this story is only just beginning to be told!
AN ASPEN VOTE FOR PART-TIME RESIDENTS?
Many part-time residents have asked The Red Ant to work toward getting them the right to vote in Aspen. While we definitely acknowledge that property ownership (and the payment of property taxes and real estate transfer taxes) without a voice in local government -- especially OUR Aspen government and how they spend these tax dollars -- is distinctly problematic and arguably un-American, we do not see a practical route to change this type of election system.
Often, our readers mention that in Telluride, second homeowners have the right to vote. This is incorrect. Second homeowners in Telluride's nearby municipality of Mountain Village DO get to vote there - this right having been granted to them in the town's charter upon its incorporation in 1995. Think of it as a big homeowner's association -- Mountain Village, at its inception, wanted its second homeowner population to engage in local civic matters and care about its governance. (Bizarrely, in Telluride the laws DO allow residents who are not American citizens to vote in local elections!?! Somehow foreigners' votes are more pertinent than those dreaded second homeowners there!)
The Red Ant thinks that it is beyond highly unlikely that Aspen's leadership and local electorate (beneficiaries of programs and projects funded by those enormous tax dollars) would approve a change to the City Charter that would allow and encourage part-time residents to vote on Aspen/Pitkin County matters.
SOLUTION--REGISTER TO VOTE IN ASPEN!
There is a solution. It's absolutely legal, legitimate, and appropriate. If you declare Aspen to be your legal residence, you can register to vote here. The Red Ant hopes you'll give this some serious consideration, after talking with your professional advisors. As you weigh this important decision, keep in mind the following:
THE RULES ON VOTING IN ASPEN AND PITKIN COUNTY
In order to be eligible to vote, you must register in the county in which you reside. By registering, you declare your primary residency in the State of Colorado, in Pitkin County, and in all districts in which your actual physical residence is included. You must register 29 days or more before an election to be eligible to vote in the election.
To vote in Pitkin County, you must be:
To vote in Aspen elections, you must obviously qualify to vote in Pitkin County (as above) AND reside WITHIN THE CITY LIMITS OF ASPEN.
Register to vote with the Pitkin County Clerk in Courthouse Plaza (next to the Courthouse) at 530 E. Main Street. 8:30a - 4:30p M-F. 970-920-5180.
And for your convenience, for the May 5 election, the Aspen City Clerk will fax/send you an absentee ballot application. Please email kathys@ci.aspen.co.usto request this, and be sure to return the ORIGINAL form to them ASAP.
WE NEVER SAY "THE ANT CAN'T" - BUT WITHOUT YOUR VOTE, IT'S A CHALLENGE
Please give great thought to changing your legal residence and registering to vote in Aspen. The nonsense in our City government must end. This can only be accomplished through the election of qualified candidates who are committed to the ideals of good governance, fiscal responsibility and transparency. There is far too much kept from the public in City Hall today. From the Mayor on down (and this includes the City Manager and City Attorney), citizens are not being properly included in the democratic process under the current leadership. Whether you are a long-time Aspen voter, a new resident, a recent retiree, or qualified seasonal worker, please become a part of creating a new era of local leadership!
IN THE MEANTIME, GET YOUR OWN $50 "P-CARD"
While Barwick and the boys (and 280 employees of the city) try to defend their prolific spending at high-end Aspen eateries (and you can bet that food is just the tip of the iceberg - stay tuned) on the public's dime with their debit-straight-from-the-city's-coffers "p-cards," you too can join the fun at Matsuhisa, Montagna and Pinons!
It's true. Get $50 from the City of Aspen if you can prove that you've lived in town throughout 2008. It's easy. Click this link
print the "2008 City of Aspen Food Tax Refund" form, fill it out, include proper documentation as noted and send it to our friends at the City by April 15. They'll mail you $50. Hey, better YOU spend your tax dollars than have it spent on a staff meeting at the Pine Creek Cookhouse! Bon appétit.
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Elizabeth
One of our readers, a CPA , noted that we might have created misunderstanding by our phrase that ". If you declare Aspen to be your legal residence, you can register to vote here." Some might read that as doing nothing more than "declaring". That is certainly not the mearning we intended. Declare if you meet the requirements, not otherwise, of course! And again, given the potential positive or negative income tax implications, or personal legal considerations , check with your advisors.
And CPA reader, thanks for calling our attention to a possible miscommunication.
Reader Comments (19)
What about individuals that own businesses in Aspen but live outside the city. We are too "wealthy" to live in employee housing. Most businesses whether retail or professionals cannot vote in the city. We too would like a say!