Just some thoughts

AEW · Post by **AEW** » Sun Jan 29, 2012 10:02 pm

I was working on my land today. I was clearing brush, burning dead stuff, working on my studio and I started to think. Every bit of effort I put into making my land better the County/State will tax me more for. I have spent hundreds of hours working and every extra penny I can spare I buy materials to work on my tool shed and studio. And now the County/State will tax me more because I made the land more valuable. The County/State did not help me do any of the work. Nor did they pay for any of the materials, actually they taxed me for the materials and all the tools I bought to build and clear the land with.They taxed me for the gas for my chainsaws, and made me pay money just for a permit to build.

So I was asking myself, Why am I doing this? In essences I am breaking my back, spending my money so I can pay more in taxes. I have owned the land for 1 year and my property taxes have doubled. I have probably paid well over $1000 buck on taxes alone for this endeavor already. Our township government and public services wastes money like it grows on trees. There is absolutely NO sense of fiscal responsibility at all here. Sadly many people on the Island have jobs that are paid for by taxes so they see things differently. To them where the money comes from means nothing at all. Just as long as they get it and how can they get more. It just does not matter where it comes from to them at all.

I have a client. She has a carriage house on a nice lot on the lake. She spends 6-8 weeks a year here and her property tax bill was over $5000 a year. So she in essence will never gain any real equity in the value of her property as the extremely high level of taxes offset any financial gain. She asked me, why should I keep a place on Beaver Island? for $5000 a year I can take an incredible vacation every year. And I had to tell her she is right. Beaver Island is a really bad investment. As proven by the massive amount of lake front homes for sale. I know many in power here on the Island will never see high property taxes as a problem because so many get paid one way or another from the county, state or townships monies. But it is something to think about. If the tax base goes then what? We are completely a financially unsustainable community. We are a money pit.

Sheri Timsak · Post by **Sheri Timsak** » Sun Jan 29, 2012 11:21 pm

Money aside - I take offense with the term "Beaver Island is a bad investment" - this is my home where my ancestors are buried in this ground along with their blood, sweat and tears, where my grandparents worked hard and raised their children, where my parents worked hard and raised their children, where we have worked hard and raised our children, enjoying the safety and security of the island, so please be careful when you use words that put Beaver Island in a bad light. Thank You.

Sheri Timsak · Post by **Sheri Timsak** » Mon Jan 30, 2012 8:55 am

"Sadly many people on the Island have jobs that are paid for by taxes so they see things differently. To them where the money comes from means nothing at all. Just as long as they get it and how can they get more. It just does not matter where it comes from to them at all."
From Yvonne Crandall: I totally disagree with the above statement made by Adam Wirth. Steve and I have worked hard here for 33 years and where the money comes from definitely means something to us. I am sure that alot of the island's hard working people are wondering what you are getting at here.

Party Plan Girl · Post by **Party Plan Girl** » Mon Jan 30, 2012 9:20 am

It's not all of them. I hope and pray that things will get better.

Trish Scott · Post by **Trish Scott** » Mon Jan 30, 2012 10:07 am

Those that toil in public positions have to deal with negative opinions such as this. It is not helpful to demean those in public service.

AEW · Post by **AEW** » Mon Jan 30, 2012 11:02 am

Let me clarify something. When I made the comment â??that people do not care where the money comes fromâ?. I do not mean to say that people are deliberately or intentionally doing something wrong. I am saying that we seem to have a mindset that does not consider often enough the value to the community of trying to lower property taxes. It would be good for each and every tax supported entity on the Island to have a monthly discussion on how they could be run more efficiently. What can they do to lower operation cost and pass those saving back to the people. And, â??How can we make the Island more financially appealing?â? There is not a lot of opportunity here for the kids of the Island and I would like to see that change. I will try to be more careful with my words, I do come across pretty course to often and I will try to do better not to.

kathemeade · Post by **kathemeade** » Mon Jan 30, 2012 1:05 pm

I am often puzzled why it is "okay" for some to put negative things on this forum. Do you not understand Adam that many tourist and potential investors, and home buyers come to this forum to find out information about the Island? Would you not be better off, and perhaps be taken more seriously if you where to choose your venue more carefully?

A few things that I find flawed in your thinking are:

1. First of all letâ??s be real here. $5,000 for eight weeks will not go that far! I highly doubt it would be on a beautiful Island, Lake Michigan, beach front, etc. 8weeks=56 days=$89.00 per night. That would be for room charges only, not to mention sales tax, travel, etc.

2. When you want to encourage change, the LAST thing you do is attack the people you want to change, or the system you want to change. When you use statements like: I know many in power here on the Island will never see high property taxes as a problem because so many get paid one way or another from the county, state or townships monies. But it is something to think about. If the tax base goes then what? We are completely a financially unsustainable community. We are a money pit." I am fairly certain that you just alienated many. I am also pretty confident that many that are involved in this process are not getting "rich" or being paid enough for the grief they are given.

3. Taxes are as certain as death. As someone who owns a home on the island, and does not claim homestead, I am realistic about what my taxes are, and your friend with the Carriage house should have been too. It is MY choice to own on the island, as it is YOUR choice and hers.

4. As far as the many lake front homes for sale on the island. Yeah...as there are all over Michigan. We are in a housing crisis across our Nation. I don't think it is fair for you to "pin" that on our local officials. That is ridiculous. Many of these homes have been vacant for years, and many are second and third generation owned and are part of estates.

5. Wouldn't it be better for us all if we ENCOURAGED growth on the island, if we encouraged people to buy on the island, bring the money here? I would think that would be an asset to you and your business as well.

As I have said before, Beaver Island is a magical place, with incredible people that are hard working, honest and caring. There is nowhere else I'd rather be than sitting on my boat watching a sunset over Lake G. So, you can have your vacation, I will take my Beaver Island investment. Investing in more than money, but I have invested in memories, friendships, and many generations to come of having the honor of spending time on Beaver Island.

FOR POTENTIAL HOME OWNERS and VISITORS:
Beaver Island is an amazing place. Please visit, check us out and take a look at the beautiful properties we have here. I promise you that you will be welcomed. We bought here three years ago and I am very sincere when I say we have not only made a good financial investment, but we have invested in so many memories for our children and grandchildren. We have invested in many friendships, and we have invested in a community that will welcome you.

Trish Scott · Post by **Trish Scott** » Mon Jan 30, 2012 1:47 pm

Very well said, Kathe!

I also consider it a privilege to spend precious time on Beaver Island among an amazingly close-knit community. The natural beauty is matched by the quality of its residents.

Terry Frysinger · Post by **Terry Frysinger** » Mon Jan 30, 2012 1:48 pm

The taxes for my seasonal hunting camp on BI are $4,744. This is the best investment Iâ??ve made in my life. Stocks go up and down and all you have to show for them are a piece of paper. Then when you cash them in you still have to pay tax. I hope to pass this investment/property on to my children and grandchildren. They love this place and the time we spend here together is priceless.
The majority of my taxes go to the schools. I canâ??t think of a better way to spend money than on kids, hardly a waste. I am grateful to the people that govern things here and often get nothing but complaints in return for all their service to the community.
Life on Beaver Island isnâ??t for everyone. The boat and planes fly both ways.

JC · Post by JC » Mon Jan 30, 2012 6:07 pm

Interesting thread with several valid point.

It seems the original post would have value to those who want to pass beaver island property along to their children and to those who (in-part) choose to purchase properties with an "investment" perspective. As far as tax liabilities negating any equity in a property investment, that's just a math problem... one that was much more investor friendly 30 years ago.

5. Wouldn't it be better for us all if we ENCOURAGED growth on the island, if we encouraged people to buy on the island, bring the money here? I would think that would be an asset to you and your business as well.

I think this was the intent of the original post. Assuming that people who buy on the island would look at the cost associated with buying property on the island. Marketing can only go so far, right?

Maybe some will go to a forum on the Internet instead, I'm not sure.

I agree that public servants shouldn't be berated, though I didn't get that from the original post. My Mother has been a township supervisor for over 30 years. I think the pay is around $45 per meeting, I'm sure it wouldn't be much different on Beaver Island.
Maybe some will go to a forum on the Internet instead, I'm not sure.

The really cool thing is that problems like this ALWAYS work themselves out, the market will see to that.

Ultimately it seems like the great debator is TIME and perhaps patience IS the best way to approach this issue. Wait and see. Maybe this conversation will make more sense in 5 years.

this is my home where my ancestors are buried in this ground along with their blood, sweat and tears, where my grandparents worked hard and raised their children, where my parents worked hard and raised their children, where we have worked hard and raised our children, enjoying the safety and security of the island, so please be careful when you use words that put Beaver Island in a bad light. Thank You

I don't know Sheri, but if anyone knows Beaver Island it sounds like she does. Obiviously if Sheri and her Children are able to enjoy the same lifestyle and wonderful experience that her Grandparents did on Beaver Island then keep on with the current plan and share it with other communities. Why mess with 4 generations of success, right?

If our kids don't have better opportunities than us and our parents did, then we have failed, right? This is good litmus test and widely accepted across the board.

BTW. Beaver Island is a special place. The local government isn't Beaver Island any more than America is the American Government.

Thanks