I think this is one of the biggest problems with our municipal tax system. There's simply no transparency which creates a silly schism between tenants and homeowners. I suspect most tenants are completely ignorant of how property taxes affect their rents.I think you are missing the bigger picture. Higher property taxes are not good news for renters.
As you know, property taxes are collected on rental buildings. Renters don't pay property taxes directly, but they do pay.
You may find them unappealing and wish for their demise but that doesn't take away from the facts presented here.The Post? Whatever. Frankly, it's likely to disappear before the end of the end of the year anyways, because of the prudent private sector running it, a development I welcome.
I dont think you understand my situation. Every unit in my building is rented out at the same price, regardless of when you moved in. Whoever rents my unit when I am done will be paying exactly what I am paying until the period when rent is increased (June). At that point, the increase is still capped. Thats just my situation, and im assuming its thanks to living in a co-op. Everything here is transparent, and each resident gets to vote on the final budget including rent increases.I think you are missing the bigger picture. Higher property taxes are not good news for renters.
As you know, property taxes are collected on rental buildings. Renters don't pay property taxes directly, but they do pay. Although a new property tax class has been created for newly constructed purpose-built rental buildings, existing rentals are taxed at a commercial rate, far in excess of Toronto's residential rate. So, even though your rent is guideline protected, you may have (depending on the type of your rental accommodation) started off paying an initial rent that was higher than it needed to be because of the onerous tax burden in this city on rental buildings. Even if you didn't, many tenants do.
Existing tenants might not get hit immediately from property tax increases, but in the era of vacancy-decontrol tenant legislation, higher taxes prompt higher rents for vacant units, so new tenants or moving tenants get hit. Over a period of time, it helps accelerate the march towards higher average rents across the city.
So, while I'm glad that your rent is less than 1.8% increase this year, I don't think renters as a class have much to laugh about. Property tax treatment is a key problem vis-a-vis rental affordability in this city.
Thanks, I love you!I see. So you want others to pay the tax increase so that you can get the services from the city.
You do know that garbage pickup in rental buildings is not done or paid for by the city? The new garbage fees on residents was already a fact of life for renters .If the city actually imposed a rental tax that would replace the taxes renters are paying indirectly, there would be a riot. Yet, the city has done this to homeowners through a new garbage fee (which is not even revenue neutral) and all the critics are blasted for being nutty.
There's a whole page of posts following yours, but not one actually replied to your inquiry. Strange.I don't get this. When we hear the yearly story about 4% tax hike, or whatever, does that mean the rate is increasing by 4% or something else? If it is the actual property tax rate that is being modified, then inflation is a non-issue. The entire point of tax rates, as opposed to a poll tax, is so that taxation is a constant function of some underlying metric of society's ability to pay. In municipal terms, I guess that means land values. Tax rates aren't meant to be adjusted for inflation. Tax rates implicitly take inflation into account by being a function of some kind of inflation sensitive wealth.
I'm looking at the financial report for the City of Mississauga right now and from 2003 to 2007 (if I'm reading it right) expenditures went from $352M to $466M, an almost 33% increase (the city did not grow by 33%, not even close) and in that context, do the Toronto numbers really look all that bad?Mississuaga taxes are going up 4.5%.... time to dump that socialist mayor.
AND Mississauga doesn't have the 1.5% transfer from businesses to homeowners (which brings in NO new revenue to the city). So the comparison is more accurately 2.5% increase for Toronto and 4.5% for Mississauga.Mississuaga taxes are going up 4.5%.... time to dump that socialist mayor.