Allez3

You and your buddy aren't going to get far with petty insults either.

I'm the one paying the tax, not them. Nevermind the fact that the tax on the multifamily unit is no larger than the tax we pay on the house we live in, in fact the multifamily unit is less. I'd assume your arrangement to be similar or you'd be out of business especially if you've held the property since the 1990s.

I'll put it in more simple terms as an example. The property tax on a $5 million apartment complex with 10 units is only going to be five times greater than that of a $1 million single family home, probably less because the apartment complex is no doubt in an older area and the home is probably getting slapped with Mello Roos. Which property has the larger tax footprint per unit? The $1 million home or the 10 tenant $5 million apartment complex.

Don't come back with "my renters live in houses". Most renters are in multifamily units where the above distribution applies and their tax basis/footprint is substantially lower. So no, renters don't pay more taxes, they pay less.

Allez3

I thought the other guy had won with the insults. My bad.

Allez3

Don't worry bro. Your subsidies are secure. We'll keep those roads nice a smooth for you.

gregf83 

You originally stated renters don't pay property taxes, the landowner does. Now you've backed down to renters pay property taxes, just like everyone else on the assessed value of their property.

Perhaps what you meant to say originally is that renters generally live in smaller dwellings with lower value so pay lower taxes. Someone living in an 800 sq ft apartment pays less than someone with a 4000 sq ft house in the same neighbourhood.

Renters are also often single so bear the full tax burden themselves rather than having it spread around a family in a detached house which increases their per capita tax burden.

Allez3

Renters don't pay property taxes. I'm simply putting the example into terms he can relate to because he is insistent on claiming they pay it through rent.

cooker

I assume you understand the math but the spin you are putting on it makes it sound like you think landlords are somehow doing renters a favour by paying their taxes. Landlords essentially forward a portion of the rent money to the municipality for property taxes, and the 'write-off' is simply an accounting measure to ensure landlords don't pay income tax on money that transiently flowed through their bank account, but which was not income. In a sense they are property tax collectors. The tax is included in the rent and passed on by the landlord.

gregf83 

He's correct. Renters don't submit the taxes but they do pay them fully. The landlord just aggregates his expenses and rolls it into a simple rent payment. They also often include heating in the rent. Please don't start arguing that renters don't pay for heat.

gregf83 

You must have an awfully advanced degree with a couple minors in logical and critical thinking to understand that concept.

Allez3

Utilities are separate.

Allez3

Once the structure is paid for the rent is generally based on market value and taxes aren't even a factor for the property owner.

gregf83 

Spoken by a non property owner...

Allez3

False.

gregf83 

It's not uncommon for apartment buildings to have centralized heating in which case it's not always possible to separately meter the heating for a particular unit. In these cases, just like taxes, building owner pays the bill and passes it on through rent to the tenants.

gregf83 

Well non rental property owner. Statements like "taxes aren't even a factor for the property owner" are naive.

Allez3

False again.

cooker

"The Market" automatically understands that landlords need rents that allow them to recover their costs, including property tax.

loky1179

Ah, but is parking included? That's what we all want to know!

loky1179

Jaywalk3r

No matter how many times you repeat your asinine claim, it's still false. Several states even allow renters to take a deduction or credit for property taxes, because they are typically paid indirectly through rent.

loky1179

Yep, Minnesota is one of those states. Every year I rented, my landlord had to give me a "Certificate of rent paid", that stated the total rent paid for the year, and the dollar figure of rent paid that went to property taxes. Then, depending on your income level, you may be eligible for a property tax refund.

And it is not true, in Minnesota anyway, that property taxes on rentals are lower. Here they are much higher. But of course the landlords just pass that cost on to the renters.

I'm a "homeowner" now, but I still don't pay property taxes. I pay the mortgage company, and they pay the property tax.

It's great how none of us have to pay taxes.

Roody

Around here, the property tax rates based on the assessed value of the property, not on the use (income or personal residence) the owner makes of the property. Of course, it might be different for you millionaires who live in the Cayman Islands.

With your poor understanding of taxes and business in general, I would LOVE to have you for a landlord! They'd raise the taxes on the house, and you wouldn't know that you could cover it by increasing my rent.

Walter S

Some people on this forum including myself have tried to convince you otherwise. Your claim that a renter does not pay property tax is technically correct. But it might as well not be. The landlord pays the tax. That remains true whether or not there even is a renter living there currently. If the landlord does not pay the tax, a renter will not be liable.

The reason it nevertheless makes sense to consider property tax as part of the renters cost is simply because the landlord does not have to rent the dwelling to you at all. Instead of renting the place they might make it a vacation home, fix it up and sell it, open a business there, or leave it empty but not screw around with you. The renter has to come up with enough money to convince the landlord to rent the place. Since the landlord will want some profit after expenses, property tax as well as other costs are part of the sum that a compelling tenant will provide as rent.

When the rent goes up there's no demand on the landlord to increase your rent. But almost any will, because otherwise the landlord finds the rent money less compelling and you can question your remaining time there as a renter.

Allez3

That's an income tax credit for low income persons. Has nothing to do with actually paying property taxes or the liability associated with them.

Allez3

Let me know when the Mortgage Company takes on the liability for payments not made on the loan, taxes or the insurance.

Allez3

Why should it be? Are you the property owner?

But back to topic, no there is no free parking unless you've somehow held the property since the beginning of time.