Quote:
Originally Posted by Simplicity
This is not true. As a renter, you are subsidized by both your landlord and the general public.
Firstly, residential is residential in this city regardless of what the density is; everybody pays taxes at a set mill rate based upon 45% of the assessed value lagging two years. The only difference is that R1 and R2 zoning districts are valued on a comparable value basis whereas multi-family is valued at a certain capitalization rate using the city's own model...
Secondly, property taxes are absolutely not considered in the economic adjustment factor handed down by residential tenancies annually. And that's always been one of the issues. The allowable rent increase annually is derived entirely by the percentage change in the average annual “All-Items” Consumer Price Index (Manitoba only) data, which is published by Statistics Canada.... Renters are subsidized in this province. Anybody suggesting otherwise just simply doesn't understand.
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1) Re different rates: I stand corrected. The mill rate is the same for multifamily, condo and single-family. My bad.
2) Re CPI adjustment. Are you 100% sure? I don't think that provincial CPI changes and the annual adjustment have always corresponded perfectly. My impression is that some years it's higher than CPI and some years it's lower. I had always thought the reason for that was that other factors (e.g., tax rates, utility prices) were included in the arithmetic for adjustments.
3) Re subsidy. This is where I disagree with you. There is a huge difference between who writes the cheque to the government (i.e., tax collection) and who actually pays the cost of the tax (i.e., tax incidence). You see this in lots of places: PST on inputs "shows up" in higher consumer prices. Payroll taxes in many cases "show up" in lowered wages. My impression is that the property taxes on the improvements portion of assessed value usually gets shifted or passed onto tenants. I don't know of any economic evidence to suggest that tax incidence rests with landlords (except perhaps on the land value).