Chafee Benefits from Tax Breaks on RI Properties
Monday, November 01, 2010
This complex web of ownership brings a series of financial and political benefits to the Chafees. Their motor vehicle registrations at the couple’s Exeter farm allow them to benefit from a lower car tax rate. Their homestead exemption in Providence cuts the property taxes on his 54 Barnes Street home by as much as half and Chafee's residency in Warwick has allowed him to mount his campaign for governor from a political base of support. (Click here to view the documents.)
“I don’t think it’s appropriate. I think you have to pay taxes in the town you live in, where you are registered to vote, because that’s your primary residence,” said Marie Sorman, president of Operation Clean Government. “There just seems to be something wrong with someone with that much wealth doing everything they can to dodge taxes while the rest of us are struggling.”
Public officials avoiding car taxes
Chafee motor vehicles registered in Exeter
The Chafees have a somewhat different situation. In 2009, Chafee and his wife had 11 motor vehicles registered in Exeter, where they have a 916.8-acre farm worth $1.6 million according to Exeter town assessment records.
Amongst the cars registered in Exeter are a 1997 Audi and three Toyota Priuses. The Chafees do not currently have any cars registered in Providence and Lincoln Chafee has a trailer with an assessed value of $500 registered at his 22 Beachwood Drive home in Warwick. Each of these numbers is according to the respective assessor’s departments in those communities. The current car tax rate in Exeter is $32.59 per $1,000 in value, compared to $76.78 in Providence and $34.60 in Warwick.
Thanks to the lower tax rate, the Chafees—who had a last reported net worth of as much as $47.8 million—were billed $2,786.46 in car taxes to Exeter in 2009, compared to as much as $6,564.69 in Providence, a savings of just under $4,000. For most taxpayers, motor vehicles are registered at a person’s primary residence, but an exclusion in state law allows individuals to register motor vehicles at a separate location if they are “customarily kept there.”
The Chafees also have a homestead exemption on their 54 Barnes Street home in Providence, according to the city assessor’s department. The exemption is up to 50 percent of the property value, according to the city ordinance in effect before July 28, 2010. (The property is listed as having two owners, according to city assessment data: the Barnes Street Trust I and II and Andrew W. Davis, who is a trustee. Lincoln Chafee and his wife are the beneficiaries of the trust and Davis is their attorney, according to Chafee’s filing with the state Ethics Commission.)
Declares residency in Warwick
Now, Chafee is claiming a third community as his residence. When he filed his declaration of candidacy form with the Rhode Island Board of Elections on June 28, 2010, Chafee listed his 22 Beachwood Drive home in Warwick as his residence. By claiming Warwick as his residence, Chafee was able to claim as his base of support a city where he was mayor throughout much of 1990s.
Chafee Campaign Manager Mike Trainor declined to comment.
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Comments:
RI Taxpayer
6:12am on Monday, November 01, 2010
"Let them eat cake."
The man truly has no idea what the rest of us are up against.
The financial problems we have just don't affect him and his family.
ed curtis
7:22am on Monday, November 01, 2010
Increases taxes on the RI citizens
Doesn't pay *his* taxes
Wants to revoke E-verify
In the unions' back pocket
Obama's best friend RINO
The state of Rhode Island & Providence Plantations will go the way of California with this kind of criminal.
________________
VOTE ROBITAILLE
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Save RI&PP; from the insanity.
Walt Barrett
7:27am on Monday, November 01, 2010
Has Chafee broken any laws, or is this just a lot of inuendo? I'm still trying to decide which candidate to vote for. Are the others lily white? Is this publication backing a different candidate?
Walt Barrett
Malachi Constant
7:30am on Monday, November 01, 2010
what a complete lack of credibility you have developed!
Walt Barrett
7:38am on Monday, November 01, 2010
Referring to whom?
Lucie R
9:47am on Monday, November 01, 2010
Walt, to answer your question, it's tax fraud, not innuendo. Whether this will be pursued is yet to be determined. At the very least, he should be disqualified from some of these tax perks he's worked for himself. The article doesn't even mention the tax break on property taxes for the Exeter property; deemed a special open space of some kind, some 700 acres is charged a ridiculously low tax - $1,200... for 700 acres? But that is legal, which is why GoLocalProv omitted it. Still, it's something you should know.
1. As I understand it, to qualify for a homestead exemption, you must swear you LIVE in the property, not just own it.
2. A personal vehicle (ELEVEN??), should be registered to your primary residence (or business, for commercial vehicles). Registration and residence is at the heart of the controversy with RI snow birds who register their cars to their part-time addresses in Florida. At least that's legal, if hard to swallow for the rest of us who pay full freight.
3. And to vote (or run for office), you must register in the district (and the address) where you LIVE.
Unless Chafee moves from home to home throughout a year and spends one-third of his time at each home (how likely is THAT, and I'm not sure even that would qualify for enough time to establish residency in any one community - four months?) Chafee is a fraud who wants you to do what he says (get a black & white TV, LMAO!!!) not as he does.
I expect more from my elected officials. I am voting for John Robitaille.
Roger Watson
9:52am on Monday, November 01, 2010
And the rich get richer ! Not only is the car tax rate lower in Exeter, if he uses Exeter as his place of garaging for those 11 vehicles, the auto insurance rates are a lot lower than either Warwick or Providence !
Bob Curley
10:14am on Monday, November 01, 2010
I'm pretty sure Linc Chafee didn't write the RI tax code, and I fail to see how it's a problem that he is taking advantage of the law as it is written to minimize his tax burden (as any other sane taxpayer would). It actually sounds like he's being smart with his money, which is a quality I appreciate in someone who soon may be managing our state tax revenues. If you don't like the car-tax exemption or the homesteading credits then change the law, but don't blame Chafee for being smart enough to get the tax breaks he's legally entitled to. This story is much ado about nothing.
ed curtis
10:34am on Monday, November 01, 2010
"Trust Chafee" - Laughable.
Should be: "Tax increases for the peons but not the rich and famous elitist class."
"Billion Dollar Baby" Bloomberg supports Linc "Antoinette" Chafee.
Barry "Alinsky" Obama supports Linc "Antoinette" Chafee.
'nuff said!
Trust a tax dodging Chafee? Liberals will find a way to justify the Progressive liars no matter what they do.
________________
VOTE ROBITAILLE
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William Gamble
11:52am on Monday, November 01, 2010
And who we might wonder did write the RI tax code? This has been a single party state for over 5 decades. Exemptions and loop holes in any tax code don’t just appear in the dead of night by magic. They are put there and kept there by special interests, who encourage, contribute and even occasionally bribe our legislators to put these things in. While one or two special favors might not hurt, after many, many years you end up with a nightmare. This is why Rhode Island ranks 42 of all the states in its business tax environment. This why we do not have any jobs.
Cleaning up this mess is not possible by a democrat no matter how smart or principled. The Republicans have had the governorship for almost 20 years and the results are minimal. This is why we should elect Chafee. He at least knows where these issues are and can afford to remove them without too much pain to the only special interest group to which he is beholden, himself.
Charles Beckers
1:00pm on Monday, November 01, 2010
So where's the investigative report on the other six gubernatorial candidates, or was Chaffee singled out for special attention by GoLocalProv? This type of information on ALL THE CANDIDATES would be really useful for a reasoned choice at the polls tomorrow.
Charlie Beckers
Newport, RI
PS: What happened to Comment #1?
ed curtis
1:27pm on Monday, November 01, 2010
"This is why we should elect Chafee. He at least knows where these issues are and can afford to remove them without too much pain to the only special interest group to which he is beholden, himself."
Chafee's cure for this state's woes is to continue spending, taxing the hell out of the makers, giving freebies to the takers and give unions everything they want.
Sounds like a great plan, for a Greece style agenda. :-(
Liberalism, proving again, you just can't cure ignorance with the facts.
Alan Mendelsohn
4:46pm on Monday, November 01, 2010
Here's why I support Frank Caprio for Governor: http://www.facebook.com/note.php?note_id=157020857669956
Alan Mendelsohn
4:47pm on Monday, November 01, 2010
oops wrong link. Here's the link I mean to send http://www.rifuture.org/why-i-support-frank-caprio-for-governor.html
ed curtis
5:14pm on Monday, November 01, 2010
Since Alan is a "spread the wealth" Progressive, how about you pay twice the amount of property and income tax you owe and I'll just pay my fair share.
Government is not the cure, it is the PROBLEM.
AMTRAK - USPS - MEDICARE - MEDICAID - FANNIE-MAE - FREDDY-MAC
TARP - GM Bailout - Chrysler Bailout - Stimulus Part 1, 2 & 3
The Border Problem - CAP & TRADE - Man-made GLOBAL WARMING
Boy those "Progressives" from both parties are batting 1000!
Michael Gardiner
6:56pm on Monday, November 01, 2010
No laws broken. They used to run this stuff on Ronald Reagan. We should only vote for someone dumb enough to pay more taxes than they need to?
Lucie R
11:45pm on Monday, November 01, 2010
Michael Gardiner, taking advantage of tax breaks to which one is entitled is one thing; manipulating the truth to qualify is quite another. North Providence offers homestead exemption. As a homeowner there, if I fail to provide the requisite paperwork by the deadline, that would be foolish. But owning property in NP and SAYING I live there, when I really live in Smithfield would be cheating. Lies are lies. And letting Chafee off on this is a result of 70 years of Democrat brainwashing in this state. "That's the way it's done." Nope. After tomorrow, that's the way it USED to be done. (If Rhode Islanders are paying attention!)
Rick Simard
12:00pm on Tuesday, November 02, 2010
Wow, you gotta be kidding. If you think there is nothing wrong with this type of behavior, you must not have any mirrors eye level in your home, OR are so brainwashed that you no longer see your image in them! Now, step away from the koolaid, take a deep breath and be honest! Nothing wrong indeed! The distinguished John Chafee must be rolling in his grave! I am not sure what is worse, Linc doing this, or the Rhode Islanders thinking it's ok! I hope you are right Lucie!
Jack McCabe
1:13pm on Tuesday, November 02, 2010
Hey Steve, big deal!
Are you short on things to write about these days?
Sounds like he has a good tax accountant to me.
I wouldn't be surprised if Linc wasn't even aware of it himself.
Buddy the felon couldn't wait to jump all over this in his prime spot at TV 6. The fact that he is adored in Rhode Island should be more of an issue then anything you could say about Linc Chafee.
Frank D'Orsi, Jr.
1:55pm on Tuesday, November 02, 2010
So were any laws broken here? Sounds like he's been given some sound financial(tax) advice, albeit at the expense of the less-educated who may be paying more. Still doesn't change my vote for Robitaille, though.