Making rental costs even worse... (Phoenix, Mesa: sales, renters, mortgage)

[Voebe]

We've seen rental complaints here, and this is an interesting factor.



Arizona Cities Rake in Millions in Taxes from Renters
No other state is as aggressive as Arizona in collecting taxes from renters.
Arizona already has a regressive tax system because it relies on sales taxes for revenue and has relatively low property taxes.
"If you look at it from the standpoint of the (property) owner they are being taxed twice," Mitchell said during a public hearing in February 2016. "Or, if you look at it from the standpoint of the renter, they are paying a tax that no one else has to pay."
https://www.phoenixnewtimes.com/news...taxes-12624944

[DAXhound]

The property managers charge the owners to administer it...which must also be recouped from the tenant.

[KurtAZ]

Kind of ingenious really...Property Owners are running a business. Business pay all kinds of taxes from purchasing supplies, payroll, revenue, etc. So like any other business, a Property Owner has tax considerations to their bottom line.

Renters "paying a tax no one else has to pay"? Um...they pay the same tax as all other renters. Much like a homeowner would be paying property tax to live in a home or yearly registration/tax to operate a vehicle. That is like saying people who own a car are paying a tax that on one else has to pay. People that buy gas are paying a tax no one has to pay. People that rent a hotel room are paying a tax no one else has to pay. People that buy clothes are paying a tax no one else has to pay. Just a ludicrous statement.

But...it is the New Times so misleading statements are to be expected.

[PhoenixSomeday]

Could have been talking about compared to other states. Nowhere else I've lived have I seen or heard of a rental tax. Upon coming to AZ, I was like "what the hell is this?? rental tax?????" when I was looking at an itemized breakdown of my first month of rent. So it's a thing here, but not in (many) other places. It's weird. It's small, but still. And what's even more bizarre is that it varies from city to city, depending on how many other rental properties the owner has. So you may get lucky and end up with someone who only has a 1 or 2 properties in a city that requires 3+.

[john3232]

Originally Posted by PhoenixSomeday

Could have been talking about compared to other states. Nowhere else I've lived have I seen or heard of a rental tax. Upon coming to AZ, I was like "what the hell is this?? rental tax?????" when I was looking at an itemized breakdown of my first month of rent. So it's a thing here, but not in (many) other places. It's weird. It's small, but still. And what's even more bizarre is that it varies from city to city, depending on how many other rental properties the owner has. So you may get lucky and end up with someone who only has a 1 or 2 properties in a city that requires 3+.

Chandler and Gilbert the sales tax is 1.5% of rent

Mesa it's 2.0% of rent

[Burning Madolf]

I love the comment from the story:
"This was supposed to be a retirement state....."
She should ask for a refund from whomever told her this lie that convinced her to retire here.

[YAZ]

Originally Posted by Burning Madolf

I love the comment from the story:
"This was supposed to be a retirement state....."
She should ask for a refund from whomever told her this lie that convinced her to retire here.

She also stated:

"The government should get involved."

Heh.

[Prickly Pear]

Originally Posted by KurtAZ

Kind of ingenious really...Property Owners are running a business. Business pay all kinds of taxes from purchasing supplies, payroll, revenue, etc. So like any other business, a Property Owner has tax considerations to their bottom line.

Renters "paying a tax no one else has to pay"? Um...they pay the same tax as all other renters. Much like a homeowner would be paying property tax to live in a home or yearly registration/tax to operate a vehicle. That is like saying people who own a car are paying a tax that on one else has to pay. People that buy gas are paying a tax no one has to pay. People that rent a hotel room are paying a tax no one else has to pay. People that buy clothes are paying a tax no one else has to pay. Just a ludicrous statement.

But...it is the New Times so misleading statements are to be expected.

How much of those expenses can be written off as a business expense though?

[AZ Manager]

Originally Posted by Prickly Pear

How much of those expenses can be written off as a business expense though?

All of them.

What Kurt wrote is, IMO as a private landlord, a BS comparison because tenants are the ones paying the property taxes, via rents, and property taxes are one of the more prevalent excuses given to increase rents even in down markets. Technically speaking renters are paying twice; and in a lot of cases they are even over charged.

Rental TPT (transaction privilege tax) is essentially a secondary property tax that owners who occupy don't have to deal with. You aren't paying TPT on your mortgage which is what they mean when they say no one else has to pay it.

As for the over charging issue; I was looking at buying a new build in the far end of the valley for a family member so I was scoping the area out for rentals to get a feel for the demand/pricing (I convert all my properties to rentals eventually) and ran across this listing. It is located on county land (not in the City limits even though the mailing address says Peoria) and is charging the rental TPT. That's either going directly to the management company, landlord, or to the city because the owner doesn't know any better.

https://www.zillow.com/homedetails/1...ource=txtshare

[DAXhound]

Keep electing lefties, and you will soon learn about city income tax...