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> It’s getting clear in cities like Ithaca that landlords pass high property taxes onto tenants quite directly. Most landlords are interested in making a profi

by pwg 4y ago

> It’s getting clear in cities like Ithaca that landlords pass high property taxes onto tenants quite directly. Most landlords are interested in making a profit from renting. Therefore the rent the landlord demands will be set to a monthly amount such that they can pay the costs of maintaining the property, which includes paying real-estate taxes to the local government, and still make some profit. So yes, renters are "paying the property tax", and always have been, they just do not see "property tax" as an itemized line item in their monthly rent amount.

PaulHoule 4y ago
To be specific in NY, local governments whether they are run by Democrats and Republicans are all concerned that much of their budget is mandated by Albany, particularly there was the decision to pay for Medicaid (health care for the poor) through local property taxes which are frequently inequitable as opposed to income taxes which are targeted at people who have large amounts of income. Thus if you rent, the cost of health insurance for the poor is baked into your rent.
- notjulianjaynes 4y ago
  > Thus if you rent, the cost of health insurance for the poor is baked into your rent. Isn't it then also baked into the cost of owning your own home?
  - PaulHoule 4y ago
    Sure is. And it causes the same problems for homeowners. One difference in NY is that homeowners get a significant STAR exemption. I get that despite the unusual situation of having one property the house I live in, two rental units, plus a riding academy (which isn't legally treated as agriculture unless I get in some silly boondoggle such as raising foals.) In the city of Ithaca there are rather large tax bills for the City of Ithaca, plus the County of Tompkins, plus the City of Ithaca school district. It adds up to a few hundred a month on the rent for the typical rental unit. Insofar as the local government thinks that "the rent is too damn high" there is a definite chunk of it they are responsible for.
    - notjulianjaynes 4y ago
      I'm finding info that the maximum STAR exemption is good for $650 annually. A.) That sounds like a very reasonable price for health insurance. B.) How does this increase rent on residential units by hundreds of dollars a month? Are you saying that if rental properties in Ithaca were instead primary residences, the city and county would collect what equals several hundred dollars per month lesss (let's call it $1200/yr) in taxes than they do for rental properties? Is this unique to Ithaca, which is a college town?
      - PaulHoule 4y ago
        It's an issue being talked out a lot in Ithaca, which is about a 20 minute drive from my farm https://www.ithaca.com/news/ithaca/cornell-s-tax-exempt-status-ithaca-s-bottom-line/article_18e74300-ad52-11ed-8550-17ee6a5bc2dc.html https://www.ithaca.com/news/ithaca/cornell-s-tax-exempt-stat... In particular that article asserts “according to the rental real estate listing service Dwellsy, Ithaca has the highest rent of any small city in the U.S. The study shows the average price for a one-bedroom was $1908 per month in 2022, up 4.5% over 2021. Only eight cities had higher average rents…New York, Boston, San Francisco, San Jose, Washington DC, Santa Barbara, Los Angeles, and San Diego.” and that article claims the tax burden in Ithaca is particularly pernicious because so much land is owned by not-for-profit organizations such as Cornell.

by pwg 4y ago

PaulHoule 4y ago

To be specific in NY, local governments whether they are run by Democrats and Republicans are all concerned that much of their budget is mandated by Albany, particularly there was the decision to pay for Medicaid (health care for the poor) through local property taxes which are frequently inequitable as opposed to income taxes which are targeted at people who have large amounts of income. Thus if you rent, the cost of health insurance for the poor is baked into your rent.

notjulianjaynes 4y ago
> Thus if you rent, the cost of health insurance for the poor is baked into your rent. Isn't it then also baked into the cost of owning your own home?
- PaulHoule 4y ago
  Sure is. And it causes the same problems for homeowners. One difference in NY is that homeowners get a significant STAR exemption. I get that despite the unusual situation of having one property the house I live in, two rental units, plus a riding academy (which isn't legally treated as agriculture unless I get in some silly boondoggle such as raising foals.) In the city of Ithaca there are rather large tax bills for the City of Ithaca, plus the County of Tompkins, plus the City of Ithaca school district. It adds up to a few hundred a month on the rent for the typical rental unit. Insofar as the local government thinks that "the rent is too damn high" there is a definite chunk of it they are responsible for.
  - notjulianjaynes 4y ago
    I'm finding info that the maximum STAR exemption is good for $650 annually. A.) That sounds like a very reasonable price for health insurance. B.) How does this increase rent on residential units by hundreds of dollars a month? Are you saying that if rental properties in Ithaca were instead primary residences, the city and county would collect what equals several hundred dollars per month lesss (let's call it $1200/yr) in taxes than they do for rental properties? Is this unique to Ithaca, which is a college town?
    - PaulHoule 4y ago
      It's an issue being talked out a lot in Ithaca, which is about a 20 minute drive from my farm https://www.ithaca.com/news/ithaca/cornell-s-tax-exempt-status-ithaca-s-bottom-line/article_18e74300-ad52-11ed-8550-17ee6a5bc2dc.html https://www.ithaca.com/news/ithaca/cornell-s-tax-exempt-stat... In particular that article asserts “according to the rental real estate listing service Dwellsy, Ithaca has the highest rent of any small city in the U.S. The study shows the average price for a one-bedroom was $1908 per month in 2022, up 4.5% over 2021. Only eight cities had higher average rents…New York, Boston, San Francisco, San Jose, Washington DC, Santa Barbara, Los Angeles, and San Diego.” and that article claims the tax burden in Ithaca is particularly pernicious because so much land is owned by not-for-profit organizations such as Cornell.