Tom Cruise Pays $400 Taxes on 248 Acres

[otohara]

of land in Telluride, CO because he has a few sheep roaming around.

Actors, captains of industry, an Ivy League astrologer, sports figures, politicians, energy giants, schoolteachers from Pasadena, Calif. All these are also considered farmers or ranchers for tax purposes in Colorado. They have secured low property taxes through agricultural designations on land they own even though they personally have little or nothing to do with producing food — the reason state legislators originally created a low property-tax rate for the agriculture sector.

In some cases, the properties where they have second, third or fourth homes were traditional working ranches before they were sold to the wealthy and became what, in real-estate lingo, are termed "gentleman ranches"

Read more: Some famous faces, names also get ag-land tax breaks in Colo. - The Denver Post http://www.denverpost.com/news/ci_17553507#ixzz1FvhfctMJ
Read The Denver Post's Terms of Use of its content: http://www.denverpost.com/termsofuse

[joeybee12]

1. Colorado's not the only state..and deadbeats like Cruise need to pay up...

It's like that in Nevada where our one-term jacka** governor had a similar deal.

[rucky]

2. Of course, these giveaways are off the table for cutting. n/t

[LiberalEsto]

3. Farmland assessments are highway robbery

Many of New Jersey's richest residents who own lots of acreage in the Peapack-Gladstone, Bedminster area of northern Somerset County, similarly evade taxes through special farmland assessments. Why should they pay property taxes? Let the poor working slobs of New Jersey pay sky-high property taxes.

As always, everything is set up to cater to the rich, and the rich only.

[otohara]

5. Cherry Hills Village

in Denver - is just a few minutes from my home - no sheep, no farmers markets, just huge homes, with big "farmer" tax breaks.

Well there are a few Denver Broncos in the community.

[old mark]

4. K&R- He is only one of many-it comes out of YOUR pocket...nt

[Vinnie From Indy]

6. What Would Xenu do Tom?

These folks should be made to pay!

[ParkieDem]

7. I understand the frustration, but ...

The purpose of ag exemptions isn't just to encourage food production, it's also to protect farmers and other middle-income landowners from exorbitatnt property taxes.

For example, my in-laws own about 150 acres of land in Texas. My wife's grandfather purchased this land on the GI bill back in the 40s. He ran cattle on it and farmed a couple of small crops.

Fast forward to the 1990s and 2000s. Suburbs, exurbs and ranchettes are popping up all around this land. As such, its value on the tax rolls is in excess of $500,000. Because it is not a homestead, normal property taxes on this land would run about $15,000 per year -- something my in-laws could never afford. If they had to pay the standard rate, they'd have no choice but to sell the land (which has been in the family for almost 70 years), probably to some developer who would put up lots of McMansions.

Fortunately, they lease the land to a neighbor who grazes his cows on it. Property taxes are about $1,000 per year with their ag exemption.

I am all for eliminating farm subsidies for big agribusiness, etc., but without the ag exemption on property taxes, most small farmers and ranchers would never be able to afford taxes on their property. I'm not sure there is an efficient way to weed out the abusers of these policies like Tom Cruise.

[otohara]

8. Maybe a "Gentleman's Tax"

for all these Gentleman's Ranches.

[Celebration]

10. you are right

Agricultural land can be surrounded by suburbs, and long time property owners can be forced to sell out to housing developers if the property is not given the agriculture exemption. Changing this practice could have negative environmental impact as well.

What I am saying is people need to be careful what they ask for.

[vim876]

15. What if...

the law were based on amount of non-farm income? You make more than, say, $100,000 in a year at a non-farm job, you don't get the tax cuts intended for yeoman farmers.

[KamaAina]

16. DING DING DING!

:thumbsup:

[ParkieDem]

18. That sounds good, but ...

I'm afraid the cost of enforcement would be pretty great. I don't think you could have an arbitrary threshold like $100k or something like that.

Second, in most jurisdictions, property taxes are assessed and collected completely independently from income taxes.

I'm not saying it's a bad idea -- it's not -- but adding a layer of complexity can have unintended consequences.

[joshcryer]

28. This is wholly tax-side.

The assumption is that if you're making a boatload of money then your land is either being utilized to that extent or you have the assets to run the land to that extent. If you're not running the land then that's your fault.

[joeglow3]

9. Ben Nelson got hammered for that in Nebraska

During the last election, it came out he had a similar designation on his land in Nebraska. Cost him quite a few votes (fortunately, not enough, though).

[jdlh8894]

11. Wonder how much Ted Turner pays

for owning 1/2 of Montana? (Exaggerating)

[eleny]

12. Yet, the real estate tax break seniors got in Colorado has been suspended

If you were 65 and lived in your home for 20 years you got a break on your real estate taxes until recently when the program got suspended.

I would have been eligible soon. I'm not angry about not getting the break. I'm willing to do my part. But when I read shit like this it just makes me feel like an ass regarding the "willing to do my part". Like I should be willing to do my part because some actor found a tax loophole and isn't paying his fair share.

Telluride? Really?

Phooey.

[zalinda]

13. It is a perfectly legal tax loop hole

I cannot blame him for taking advantage of it, just as many rich people do. This is one of the reasons that the income tax rate for the rich should be higher, and why it was higher for so long.

zalinda

[eleny]

14. Nonsense

If he's genuine about raising sheep for wool or meat then I don't have a quarrel with him. But if he keeps just enough animals to qualify him for the tax break meant for agriculture then he's out of bounds imo.

The law was meant to help and encourage those who raise sheep commercially. I do blame him for taking advantage of a law that was clearly not meant for his kind of maneuvering. I hope that our legislature tightens up the law. But I won't hold my breath since people as wealthy as Cruise have already used their wealth to buy the loyalty of politicians. Maybe with the money they saved sauntering through other loopholes.

[zalinda]

19. It is not only Cruise, but many, many people

including politicians. The law is written so broadly that most anyone can take advantage of it and do. Cruise doesn't do his taxes, his business manager probably handles that. I doubt very much that Cruise or many other celebrities know exactly where each penny comes from or goes to. Most of them could not tell you how they are doing financially, which is why Michael Jackson, Nicolas Cage, Sammy Davis, Jr, Redd Foxx and such got into financial trouble.

zalinda

[eleny]

20. Well, you can't miss the point any farther than you have

See ya.

[jdlh8894]

21. What was the point?

[eleny]

22. That a number of wealthy landowners in Colorado are finding ways to get out of paying taxes

Not just Cruise. And it doesn't have to be excused because it's a legal loophole.

That's the point of the article that lists a number of people who are doing this and where they own the land.

[SoCalDem]

23. When the super-rich "discovered" Colorado in a big way

they had money & connections to plop down fantastic personal resorts all over the place & forced the real estate "values" so high that millions of "normal" Coloradans...people who lived there FULL-TIME, and who had "normal" jobs, could no longer afford to buy decent homes for their families.

If the place is a working ranch/farm and PRODUCES, a certain level of waivering could go on, but if the place is little more than a cushy hideaway for a jet setter, it needs to be taxed at the prevailing rates.

It's getting harder and harder for the super rich to "get away" from the prying eyes of the paparazzi telephoto lenses, so they keep finding "new", more out of the way places. Once upon a time, they could go to Catalina, Palm Springs, Vegas, sleepy little Mexican towns, but in recent years they have focused on rural USA, to the detriment of the middle class & poor who are stuck there, tied to low wage jobs and high-cost housing, mixed with a lessening of social services:(

[eleny]

24. That's it

It happened in a big way in Florida several years ago. Hubby met a woman who worked in the Lee County tax office. The woman said her family couldn't afford the taxes on the property her mom left them when she died. They were hoping to get it sold before they lost it.

And this reminds me of how on Long Island the tax rates were less on the north shore, along the Long Island Sound, where the wealthy owned estates. The tax rates on the south shore of the Island were so much more for the middle income houses.

Speaking of Telluride, Oprah owns a ski home near there with acreage but I haven't a clue about her tax bill.

[zalinda]

25. Actually, I didn't miss the point.

There was a reason why in the 50's that the rich were taxed at 50% and higher. It was so they could invest, and make their money 'work' for them. By 'work' for them, means it was creating tax write-offs. There were very few rich that actually paid the 50 to 91%, in fact, I doubt there were any. It was a way to level the playing field though and to get the rich to invest in America. If Tom Cruise was paying 91% on his taxable income, then the $400 he pays in property tax would be a moot point.

Complaining that celebrities and the like get away with paying so little because they have sheep on their land, is a little ridiculous, when it is legal. Hell, they have been doing it for decades. You don't think the Crawford Ranch is a real ranch, do you? The more complicated you make the tax system, the more loop holes are made.

And, yes, I think it is a disgusting way to avoid taxes, but, it is not the celebrity who is doing it, it is the tax accountant, who is following the tax code. You don't blame the people who are following the law, you blame the people who are making the laws.

zalinda

[eleny]

29. It's appaling that you would take this opportunity to protect the wealthy from themselves

They hire these accountants, therefore the wealthy are every bit as guilty as their accountants.

Please take the last word if you feel the need. I've had my say.

[KamaAina]

17. Aw, give the poor guy a break.

He needs the money to pay for all those classes and stuff. :sarcasm:

[JeffersonChick]

26. Back in high school, when all my girlfriends were gaga

over Tom Cruise, I never could stand him. Just call me intuitive.

[Mojeoux]

27. I hope this story has LONG LEGS!!!!! Rec and Kick

This is the exact type of simple empirical evidence that puts complex concepts in new perspectives. :wtf: :wow: :wow: :kick: :applause: :applause: :rofl:
:think: :think: :think: :think: :think: :think: :think: :think: :think: :think: :think: :think: :think: