Homeowners will have to pay
August 26, 2010 · 4:45 PM
This is in response to Sue Siegfried’s letter “It’s not just homeowners who pay.”
As a homeowner and someone who has owned rental property for over 50 years, I can tell you that landlords set the price at what the market will bear — if there are a lot of rentals on the market, the price will come down (simple supply and demand principles). Obviously Ms. Siegfried has never been a landlord.
Years ago it was only property owners who were able to vote on property tax increases. This kept government in check. Somewhere along the line the rules were changed and only a 60 percent majority was required to pass such tax issues. It was soon discovered that even at 60 percent it was too tough for politicians and bureaucrats to pass additional taxation, therefore they passed new legislation that dropped the requirement to a paltry 50 percent. This undue and unfair tax burden on property owners will only make it more and more difficult for people to own real estate. Thankfully for Ms. Siegfried, she doesn’t have to worry about these burdens until becoming a homeowner.
We used to make around a 10 percent profit on our rentals, that was until taxes, insurance and upkeep jumped so high—now we’re lucky to make 2 percent to 3 percent. As more and more young families lose their jobs and move in with their parents, more rentals will become available creating a price drop. So, I stand by my original statements that over 60 percent of renters pay no taxes. What really upsets me is if you own property in other counties, you cannot vote on taxation issues in those counties. What happened to no taxation without representation?