4 ms·
Many cities/towns have "rental taxes" that are charged to the owner. These can either be a flat-fee for a rental license or a percentage of rental income. Most
by jeffmould 9y ago
Many cities/towns have "rental taxes" that are charged to the owner. These can either be a flat-fee for a rental license or a percentage of rental income. Most owners just build this expense into the monthly rent cost so the tenant never sees or thinks about it.
- wott 9y agoThanks to the 3 people who answered. So, roughly, we can consider that the price of the rent is complete, no extra to add in general. Considering how high your rents are, that's lucky :-) In France there is no VAT on rent; however there is a local tax, called 'living' tax, more or less based on the surface and theoretical value of the rented flat/house (but disconnected from the actual rent price). It is always paid to the tax office, no connection with the rent and the owner, so of course not included in rent prices. The owner pays another local property tax, on the same bases too. (If you live in your own property, you naturally pay both).
- yardie 9y agoAhh yes. As an expat living in France it came as a shock to me that I had to pay tax on rent. "but doesn't the owner pay that?", I asked my spouse. Would still rather pay higher French taxes, where you know the money is going to social service, even if they are bit too generous, rather than the US rate where you pay slightly less but all services are barely functional.
- wott 9y agoYes, when you don't expect it, I reckon it can be a shocker, considering that it can be quite high depending on which town you live in. As I said, it is not exactly a tax on rent (it is not a percentage of the rent price and even if you don't pay a rent, you shall pay it), but yes, it has to be counted in your expenses. That tax is not really going to social services (well, that depends how you define social services, in fact), it is more for the local infrastructures: most of it goes to the municipality, so it is used for streets and small roads, for primary schools, for municipal administration, swimming pool, library, and so on; another part goes to the department (a bit like a US county), it is used for roads, middle schools, and one-off financing of heavy local equipment. Part of it can be used for local social action too, indeed. The general principle is that it is designed to fund the burden you put on the local infrastructure by living in that place (what is a bit weird is that it is not based on the number of people living in a house, it is assumed that the bigger the house, the more inhabitants, the more burden on infrastructures, I guess). Then anything can happen but that is the general goal :-) Anyway, this tax is going away soon for most people. What will replace the funding is still mysterious however.