The problem isn't taxes
08.20.2007 | 
ScottPark
ScottPark People constantly complain about taxes here in Oakland, as though elected leaders are able to unilaterally raise people’s property taxes. Get a grip: in California, you cannot raise taxes on property without a 2/3 majority vote. If you want lower taxes, stop voting for higher ones.
I own, and I bought recently, meaning I pay more than owners who bought in the 1970s (but who somehow still complain about being taxed on their $45,000 assessed value).
Of course renters should vote on bonds and other things. Tenant rents pay for property and business taxes. Indeed, even under Oakland’s rent control, a landlord can increase rents based on increased operating costs (including taxes).
What I find is that people who complain about high taxes aren’t complaining about high taxes, per se, but rather are unhappy with where they live. If everyone paid 200% more taxes, but had great schools, safe streets, free healthcare, etc, only a few zealots would complain.
The problem isn’t taxes, it’s City services.
I own, and I bought recently, meaning I pay more than owners who bought in the 1970s (but who somehow still complain about being taxed on their $45,000 assessed value).
Of course renters should vote on bonds and other things. Tenant rents pay for property and business taxes. Indeed, even under Oakland’s rent control, a landlord can increase rents based on increased operating costs (including taxes).
What I find is that people who complain about high taxes aren’t complaining about high taxes, per se, but rather are unhappy with where they live. If everyone paid 200% more taxes, but had great schools, safe streets, free healthcare, etc, only a few zealots would complain.
The problem isn’t taxes, it’s City services.
k.
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Reader Comments (2)
basically, rents are so below what an equivalent mortgage and taxes would be for a given property, it's not even funny. currently, you can rent a place about half of what it would cost for a mortgage, property taxes, water and garbage if you were to buy the same place.
the county and the state pretty much reassess your property the prop. 13 maximum of 2%, compounded every year. if you raised your tenants 2% every year, they'd leave.
so, why are there still so many cheap rents? because landlords have had a relatively hard time keeping tenants with the screaming housing market. things will probably change now that the tides have turned.
another reason is because there are MANY rental properties that were purchased decades ago. the overall monetary investment is very low at this point, so landlords can have aggressively priced rents compared to income property bought in the last few years.
to say that tenants pay their fair share of taxes compared to property owners is a bit absurd. i pay $13,000/year in property taxes. that's $13,000/year more than ANY TENANT.
if they did, they would be paying $2,175/month *or a two-bedrm in the the dimond. are they? no, they are not.
* lets say a 2 bdrm condo goes for $475,000. so 475,000 x .0145 = 6,887.50 / 12 months = $574. average rent for a 2 bdrm apartment is $1,600/months (for a good one of "condo quality"). so, $1,600 +$574 = approx. $2,175
Uh...yeah. But I wouldn't complain about a lack of service if I paid no taxes. I would barely complain if I barely paid taxes.
If I pay a lot, I expect a lot, and I should.