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Of course it has. There is no business tax if you buy a house and rent it, you are taxed on profits, but there is only the normal residential tax = zero busines
by aurizon 6y ago
Of course it has. There is no business tax if you buy a house and rent it, you are taxed on profits, but there is only the normal residential tax = zero business tax.
This has caused huge numbers of rent seekers to pile into retail rentals as interest market rates are far lower than rental returns.
Tax all rentals with both normal realty taxes PLUS tax each unit with a business tax - same as a shop.
The rent seekers will flee, and people who want to live there will buy them.
Very sound economic logic.
- ChrisLomont 6y ago>There is no business tax if you buy a house and rent it Rental properties pay property tax whether or not the business is profitable, and if the business is profitable, then the profits are also taxed.
- aurizon 6y agoChrisLomont. You miss the point. Real Estate taxes to the city PLUS Business taxes to the city PLUS taxes on profits to the IRS and some states. The object is to create a lower tax regime for those that buy and live there, to in time drive out rent seekers. As it is large numbers of properties are bought and banked into short term rentals, BNB etc. City rules are easy to evade via careful client vetting. These people want to defeate the laws of supply demand via such artificial shortages.