"Bi-coastal Tax Chutzpah: CA & NY Congressmen Say They Live in Maryland to Claim Property Tax Break on Million Dollar Vacation Homes":

Prof. Paul Caron at TaxProf Blog blogs about this, and links to various news stories. I don't know tax law well enough to have an informed opinion, but Caron does know tax law, and seems to think there is indeed some misbehavior there.

ChrisIowa (mail):
If a congressman claims a home in Maryland as his principal residence, is he eligible to represent a CA district in Congress?
3.21.2009 2:49pm
Hank Bowman, MD (mail) (www):
Someone should check the voter rolls and see if they voted in Maryland, too..
3.21.2009 3:14pm
DiverDan (mail):
U.S. Constitution, Art. I, Section 2, 2nd Paragraph:


No Person shall be a Representative who shall not have attained to the age of twenty five Years, and been seven Years a Citizen of the United States, and who shall not, when elected, be an Inhabitant of that State in which he shall be chosen.


So, if these 2 Congressmen claimed Maryland as their "primary residence" on election Tuesday in November, shouldn't they be removed from the House? Can they be a "resident" of Maryland while at the same time being an "inhabitant" of the states they represent? Query, who has standing to seek their removal through judicial proceedings? Any taxpayer? Or only a resident of the district which they claim to represent?
3.21.2009 3:40pm
AJK:
I guess technically they just have to be California/New York residents on the day of the election, and after that they can move wherever they want (until the next election). I have no idea whether they were diligent about that of course.
3.21.2009 3:45pm
BZ (mail):
I know it sounds bad in this economy, and I also know that I shouldn't be seen as defending Members of Congress, but a "million-dollar" home in Maryland isn't really all that grand. Not as bad as California or NYC, but still. Townhouses are running $800,000 close in. Regular suburban houses can be a million nearby. I know one influential Senator who lives in an apartment complex near me, which has a very high percentage of "affordable" units.
3.21.2009 4:19pm
Thoughtful (mail):
I guess this means these guys won't be eligible for Treasury Secretary when Geithner steps down...
3.21.2009 4:37pm
Thoughtful (mail):
BZ,

Nice of you to bend over backwards to defend the Congresscritters (usually they just have us bend over forwards), but based on the provided link California Congressman Pete Stark's Maryland "primary residence" is described as "lakefront" and New York Congressman Elliot Engle's Maryland home was formerly owned by ABC's Ted Koppel and Wonder Woman Lynda Carter. I'm thinking these were not pre-fab...
3.21.2009 4:42pm
Visitor Again:
New York Congressman Elliot Engle's Maryland home was formerly owned by ABC's Ted Koppel and Wonder Woman Lynda Carter. I'm thinking these were not pre-fab...

Yeah, but Koppel liked to make a spectacle of himself by mixing with the gangbangers in Compton, Watts and South Central L.A. and who knows about Wonder Woman.
3.21.2009 5:24pm
kdonovan:
"Query, who has standing to seek their removal through judicial proceedings? Any taxpayer? Or only a resident of the district which they claim to represent?"

I thought the Constitution (article 1, section 5) said only the House can adjudicate its members qualifications and the like. Thus some member would have to make a motion to expel them.

Kevin
3.21.2009 7:08pm
Andy Freeman (mail):
> be an Inhabitant of that State in which he shall be chosen.

One can be "an inhabitant" of several states. For the purposes of the tax break, Stark says that primary residence is Maryland. I don't know that CA excludes him from representing a CA district if he has a primary residence elsewhere, but it would be interesting to see if he claims a "homeowners exemption" for his CA residence (if any). That exemption is only available on primary residences and (IIRC) there can be only one according to CA law.

I do wonder if Stark files income taxes in both Maryland and CA and if he files as a non-resident in one of them.

Filing as a non-resident in CA would allow him to protect much of his congressional salary from CA's income tax, which is among the highest in the nation. Unless the CA legislature decided that congress critters shouldn't pay.
3.21.2009 7:16pm
Daryl Herbert (www):
Brilliant strategy by Maryland.

Offer a gigantic tax break to lure rich politicians into buying big(ger) houses in MD . . .

Then take it away from them after they've bought the house.
3.21.2009 8:31pm
Jam:
Are we a Bannana Republic yet? Sheeesh.
3.21.2009 9:03pm
jsmith (mail):
This tax break is pretty common, I believe. The taxable assessment of a primary residence can only rise by 10% annually at most; many counties have lower limits. A property that is not a primary residence is taxed at full market value. In Maryland, property is assessed by the State (only Montana and I believe Vermont also have property assessed by the State) every three years.

Stark's house is in Anne Arundel County, on the Chesapeake Bay I think, not a lake. Anne Arundel's cap is 2%--the taxable value can only increase 2% annually. Obviously, over the past 10-15 years, this has saved the good congressman an awful lot of money.

So, "take it away"? I don't think so. Common sense dictates he's either a resident of Maryland or California. If he's a resident of California, he shouldn't get the property tax break. If he's a resident of Maryland, he shouldn't be representing California in Congress.

Seems pretty simple. But the lawyers are about to get hold of it...
3.21.2009 9:12pm
Smokey Behr:
Am I the only one not surprised that Stark and Engel are Democrats? The Original Culture of Corruption and "not for me, but for thee" continues...
3.21.2009 9:18pm
DiversityHire:
formerly owned by … Wonder Woman

How did Engle vote on the bailout bonus tax bill? You know what they say about people who live in glass houses.
3.21.2009 9:30pm
BGates:
In case I'm not the only one who was curious, the correct parsing is
formerly owned by (ABC's Ted Koppel) and (Wonder Woman Lynda Carter),
not
formerly owned by (ABC's Ted Koppel and Wonder Woman Lynda Carter).
3.21.2009 11:34pm
Bill Poser (mail) (www):

Am I the only one not surprised that Stark and Engel are Democrats? The Original Culture of Corruption and "not for me, but for thee" continues...


Okay, if you're going to get partisan about this, wasn't it a far great fraud when Dick Cheney changed his voter registration from Texas to Wyoming so as not to be from the same state as George Bush when he was in fact not a resident of Wyoming
3.22.2009 12:53am
RPT (mail):
There's no way to keep any good thread from becoming a Democrat-bashing exercise. So, in that spirit, let's not forget serial fraudulent voter Ann (it's a good thing I have a boyfriend at the FBI) Coulter....and Tom McClintock, Mr. North and South California.
3.22.2009 1:13am
Dave N (mail):
I am not making this partisan. But Democrats complaining about Dick Cheney re-establishing residency in Wyoming (a state he represented in Congress for over a decade) had no problem with Hillary Clinton running for the U.S. Senate from New York the same year (query, in what year prior to 2000 did either Clinton ever vote in New York state?).

And I honestly don't care what political party Engle and Stark belong to--if they were Republicans, I would find it just as deplorable.
3.22.2009 2:21am
Moneyrunner43 (www):
Dave N: Good comeback
Bill Poser - Special Olympian?

I wonder what's Barack's teleprompter has to say about this?
3.22.2009 10:13am
Sagar:
BZ,

a "million-dollar" home in Maryland isn't really all that grand.

how about a "quarter million dollar" annual income then? it sounds only one-fourth as grand as a "million dollar" something, but apparently is the definition of rich!
3.22.2009 2:50pm
Sagar:
it is alomst as if the politicians think of themselves as the "ruling class" ... wonder when (or if) the voting public will take a break from american idol and pay attention to the institutional corruption of the pols.

Cheney and Hillary might have been opportunistic in their moves, but at least they didn't go back and claim benefits from their previous states of residence ... at least none that we are aware of.
3.22.2009 2:56pm
neurodoc:
Earlier this month, Congressmen Eliot Engel, a lifelong resident of the Bronx, was outed for claiming the Maryland real estate tax break on his Maryland home (formerly owned by ABC's Ted Koppel and Wonder Woman Lynda Carter) assessed at $938,000.
If that house was owned by Ted Koppel and Lynda Carter, it must have been at different times, since Lynda Carter is married to DC attorney Robert Altman, who was caught up in the BCCI scandal along with Clarke Clifford. And a house assessed at $938K in Montgomery County, Maryland is nothing at all exceptional.

I expect, though am not sure, that more congressmen and senators live in VA, which has somewhat lower state income taxes (and no state estate tax), than in MD. And I doubt that Stark and Engel are all that exceptional with regard to this tax question.
3.23.2009 12:51am
Ricardo (mail):
It doesn't look like either of these gentlemen are going to be removed from Congress: that's too much of a thorny issue. Instead, it looks like the relevant action should come from the state of Maryland, which ought to be demanding taxes from both of them.

In Stark's case, he still holds a California driver's license registered at a California address and presumably has a domicile there, so that's enough to make him a resident. Since California has many wealthy residents, it makes it deliberately difficult to lose California residency. Since Stark didn't take the necessary steps to lose California residency, he should still represent his state in Congress but ought to cough up the tax money to Maryland.
3.23.2009 8:52am
A. Zarkov (mail):
According to CA law someone can have many residencies, but only one domicile. However that domicile can rotate! Even on a weekly basis! In an old case involving a child on a rotating custody schedule a California appellate court held that the child's domicile rotated between his parents houses. The case involved Safeco Insurance Company. I don't know if this holding has been superseded by others. In my opinion it was a bizarre holding designed to stick it to an insurance company.
3.23.2009 12:10pm

Post as: [Register] [Log In]

Account:
Password:
Remember info?

If you have a comment about spelling, typos, or format errors, please e-mail the poster directly rather than posting a comment.

Comment Policy: We reserve the right to edit or delete comments, and in extreme cases to ban commenters, at our discretion. Comments must be relevant and civil (and, especially, free of name-calling). We think of comment threads like dinner parties at our homes. If you make the party unpleasant for us or for others, we'd rather you went elsewhere. We're happy to see a wide range of viewpoints, but we want all of them to be expressed as politely as possible.

We realize that such a comment policy can never be evenly enforced, because we can't possibly monitor every comment equally well. Hundreds of comments are posted every day here, and we don't read them all. Those we read, we read with different degrees of attention, and in different moods. We try to be fair, but we make no promises.

And remember, it's a big Internet. If you think we were mistaken in removing your post (or, in extreme cases, in removing you) -- or if you prefer a more free-for-all approach -- there are surely plenty of ways you can still get your views out.