[homeles_ot-l] Tenants pay higher property taxes than homeowners - meeting on May 1

Fri Apr 27 13:35:21 EDT 2012

1)I do represent landlords but it is ludicrous for M. Laplante to suggest that Rob MacDonald is a shill for landlords.  Other tenant advocates who have been speaking on the issue for years include Dan MacIntyre, Alex Cullen and Diane Holmes.  Trust me, they are not shills for landlords either.  The overtaxation of rental apartments is not a landlord vs tenant issue - it is an issue that tenants, social housing providers and private sector landlords can all agree upon.
2) Rental apartments, like all other properties, are assessed at their market value.  As it is now, the tax rate on rental apartments is about 1.7%, and the tax rate on condos and other owner occupied properties is very close to 1%.  So tenants who live in a $100,000 apartment pay $1,700 in City taxes through their rents, while homeowners who live in a $100,000 home pay $1,000 in City taxes, and homeowners who live in a $340,000 home pay about $3,400.  For a home of 3.4 times the value, a homeowner pays twice the tax as a tenant.
3) If there is a tax decrease, the Residential Tenancies Act requires mandatory rent reductions, which are often higher than the tax decrease.  Economists are clear that the additional tax is effectively paid by tenants through their rents.  Lower tax = lower rents.
4) High end apartments that are in condos, or were built in the last 10 years, pay the same tax rate as homeowners.  It is only older, usually low-end apartments that pay the higher tax rate.  Ending that is not subsidizing apartments; it would be bringing tax fairness to tenants.
John Dickie
613-235-0101

From: homeles_ot-l-bounces at list.web.net [mailto:homeles_ot-l-bounces at list.web.net] On Behalf Of M Laplante
Sent: April 26, 2012 10:12 PM
To: Alliance listserv (homeles_ot-l at list.web.net)
Subject: Re: [homeles_ot-l] Tenants pay higher property taxes than homeowners - meeting on May 1

This may not be the appropriate list for a debate but I will point out the following
1) The people behind this are landlords, not tenants organizations
2) The tax rate for rental apartments is higher, but assessments are done differently, it's taxed on about half its value
3) While landlords have a legal obligation to pass rent reductions on to some tenants, in fact a large proportion remains in their pockets.
4) Of all the ways to use property tax money to subsidize rents, reducing a tax rate rate returns more money into high-end than low-end apartments. An approach targeted, for instance one aimed at increasing supply, or subsidizing tenants would be better than an across-the-board tax cut to landlords.
________________________________
Martin Laplante, PhD
RES Policy Research Inc.
Ottawa, Canada
613-864-7373
On Thu, Apr 26, 2012 at 4:57 PM, Linda O'Neil <loneil at cmhaottawa.ca<mailto:loneil at cmhaottawa.ca>> wrote:

FYI

Linda O'Neil
Chair, Public Affairs Working Group
The Alliance to End Homelessness

Public Education Consultant
Canadian Mental Health Association, Ottawa Branch
301-1355 Bank St., Ottawa ON, K1H 8K7
loneil at cmhaottawa.ca<mailto:loneil at cmhaottawa.ca>
Tel: (613) 737-7791 Ext 135<tel:%28613%29%20737-7791%20Ext%20135>

***

-----Original Message-----

From: Rob MacDonald [mailto:robm at housinghelp.on.ca]

Sent: Thursday, April 26, 2012 10:08 AM

To: Rob MacDonald

Subject: Property Tax Ratio

Hi, everyone,

 The Finance and Economic Development Committee is meeting on Tuesday, May 1st at 9:30am.  The committee will be reviewing the property tax ratio which determines how much businesses and residences pay for property taxes.

 As some of you are aware, the City taxes multi-residential rental units at a higher rate of taxes through their rents than homeowners of comparable units.  The City seems to think it's fair that tenants pay 70% more in property taxes than homeowners. even though tenants have less than half the income of homeowners.

 This ratio basically 'targets' the poorest people in our city  so they pay more in taxes than those of higher income.  A lower tax ratio would mean lower rents for tenants.

 The other issue is that a rental unit is defined as comparable if it has the same use as a private home, for example, a one-bedroom apartment and a one-bedroom condo.  I think most of us in the rental market are aware that rental housing is getting older and decrepit and often not kept up to standards, while luxury condominiums are the booming trend in Ottawa (in fact, affordable rental housing is often demolished to make way for another condo project).  Also the size, quality and amenities are certainly not comparable.

 Below is a list of Ottawa Municipal Councillors.  I would encourage every tenant to be at City Hall for this meeting, but if you can't be there then p[lease contact your City Councillor and demand fairness for tenants.  The contact information for City Councillors is listed below, following the link to the City report and recommendations.

http://ottawa.ca/calendar/ottawa/citycouncil/csedc/2012/05-01/agendaindex20.htm

Rob MacDonald

List of City Councillors

Councillor Stephen Blais

Ward 19 - Cumberland [ PDF 1.7 MB ]

Tel: 613-580-2489<tel:613-580-2489>

Fax: 613-580-2697<tel:613-580-2697>

Stephen.Blais at ottawa.ca<mailto:Stephen.Blais at ottawa.ca>

Councillor Rainer Bloess

Ward 2 - Innes [ PDF 1.6 MB ]

Tel: 613-580-2472<tel:613-580-2472>

Fax: 613-580-2512<tel:613-580-2512>

Rainer.Bloess at ottawa.ca<mailto:Rainer.Bloess at ottawa.ca>

Councillor David Chernushenko

Ward 17 - Capital [ PDF 1.3 MB ]

Tel: 613-580-2487<tel:613-580-2487>

David.Chernushenko at ottawa.ca<mailto:David.Chernushenko at ottawa.ca>

Councillor Rick Chiarelli

Ward 8 - College [ PDF 1.7 MB ]

Tel: 613-580-2478<tel:613-580-2478>

Fax: 613-580-2518<tel:613-580-2518>

Rick.Chiarelli at ottawa.ca<mailto:Rick.Chiarelli at ottawa.ca>

Councillor Peter Clark

Ward 13 - Rideau-Rockcliffe [ PDF 1.5 MB ]

Tel: 613-580-2483<tel:613-580-2483>

Fax: 613-580-2523<tel:613-580-2523>

Peter.Clark at ottawa.ca<mailto:Peter.Clark at ottawa.ca>

Councillor Diane Deans

Ward 10 - Gloucester-Southgate [ PDF 1.7 MB ]

Tel: 613-580-2480<tel:613-580-2480>

Fax: 613-580-2520<tel:613-580-2520>

Diane.Deans at ottawa.ca<mailto:Diane.Deans at ottawa.ca>

Councillor Steve Desroches

Ward 22 - Gloucester-South Nepean [ PDF 1.4 MB ]

Tel: 613-580-2751<tel:613-580-2751>

Fax: 613-580-2761<tel:613-580-2761>

Steve.Desroches at ottawa.ca<mailto:Steve.Desroches at ottawa.ca>

Councillor Keith Egli

Ward 9 - Knoxdale-Merivale [ PDF 1.5 MB ]

Tel: 613-580-2479<tel:613-580-2479>

Fax: 613-580-2519<tel:613-580-2519>

ward9 at ottawa.ca<mailto:ward9 at ottawa.ca>

Councillor Eli El-Chantiry

Ward 5 - West Carleton-March [ PDF 2.8 MB ]

Tel: 613-580-2475<tel:613-580-2475>

Fax: 613-580-2515<tel:613-580-2515>

Eli.El-Chantiry at ottawa.ca<mailto:Eli.El-Chantiry at ottawa.ca>

Councillor Mathieu Fleury

Ward 12 - Rideau-Vanier [ PDF 1.2 MB ]

Tel: 613-580-2482<tel:613-580-2482>

Fax: 613-580-2522<tel:613-580-2522>

Mathieu.Fleury at ottawa.ca<mailto:Mathieu.Fleury at ottawa.ca>

Councillor Jan Harder

Ward 3 - Barrhaven [ PDF 1.4 MB ]

Tel: 613-580-2473<tel:613-580-2473>

Fax: 613-580-2513<tel:613-580-2513>

Jan.Harder at ottawa.ca<mailto:Jan.Harder at ottawa.ca>

Councillor Katherine Hobbs

Ward 15 - Kitchissippi [ PDF 1.3 MB ]

Tel: 613-580-2485<tel:613-580-2485>

Fax: 613-580-2525<tel:613-580-2525>

Katherine.Hobbs at ottawa.ca<mailto:Katherine.Hobbs at ottawa.ca>

Councillor Diane Holmes

Ward 14 - Somerset [ PDF 1.2 MB ]

Tel: 613-580-2484<tel:613-580-2484>

Fax: 613-580-2524<tel:613-580-2524>

Diane.Holmes at ottawa.ca<mailto:Diane.Holmes at ottawa.ca>

Councillor Allan Hubley

Ward 23 - Kanata South [ PDF 1.6 MB ]

Tel: 613-580-2752<tel:613-580-2752>

Fax: 613-580-2762<tel:613-580-2762>

Allan.Hubley at ottawa.ca<mailto:Allan.Hubley at ottawa.ca>

Councillor Peter Hume

Ward 18 - Alta Vista [ PDF 1.2 MB ]

Tel: 613-580-2488<tel:613-580-2488>

Fax: 613-580-2528<tel:613-580-2528>

Peter.Hume at ottawa.ca<mailto:Peter.Hume at ottawa.ca>

Councillor Maria McRae

Ward 16 - River [ PDF 1.7 MB ]

Tel: 613-580-2486<tel:613-580-2486>

Fax: 613-580-2526<tel:613-580-2526>

Maria.Mcrae at ottawa.ca<mailto:Maria.Mcrae at ottawa.ca>

Councillor Scott Moffatt

Ward 21 - Rideau-Goulbourn [ PDF 3.3 MB ]

Tel: 613-580-2491<tel:613-580-2491>

Fax: 613-580-2531<tel:613-580-2531>

Scott.Moffatt at ottawa.ca<mailto:Scott.Moffatt at ottawa.ca>

Councillor Bob Monette

Ward 1 - Orléans [ PDF 1.6 MB ]

Tel: 613-580-2471<tel:613-580-2471>

Fax: 613-580-2511<tel:613-580-2511>

Bob.Monette at ottawa.ca<mailto:Bob.Monette at ottawa.ca>

Councillor Shad Qadri

Ward 6 - Stittsville [ PDF 1.8 MB ]

Tel: 613-580-2476<tel:613-580-2476>

Fax: 613-580-2516<tel:613-580-2516>

Shad.Qadri at ottawa.ca<mailto:Shad.Qadri at ottawa.ca>

Councillor Mark Taylor

Ward 7 - Bay [ PDF 1.6 MB ]

Tel: 613-580-2477<tel:613-580-2477>

Fax: 613-580-2517<tel:613-580-2517>

Mark.Taylor at ottawa.ca<mailto:Mark.Taylor at ottawa.ca>

Councillor Tim Tierney

Ward 11 - Beacon Hill-Cyrville [ PDF 1.1 MB ]

Tel: 613-580-2481<tel:613-580-2481>

Fax: 613-580-2521<tel:613-580-2521>

Tim.Tierney at ottawa.ca<mailto:Tim.Tierney at ottawa.ca>

Councillor Doug Thompson

Ward 20 - Osgoode [ PDF 1.8 MB ]

Tel: 613-580-2490<tel:613-580-2490>

Fax: 613-580-2530<tel:613-580-2530>

Doug.Thompson at ottawa.ca<mailto:Doug.Thompson at ottawa.ca>

Councillor Marianne Wilkinson

Ward 4 - Kanata North [ PDF 1.2 MB ]

Tel: 613-580-2474<tel:613-580-2474>

Fax: 613-580-2514<tel:613-580-2514>

Marianne.Wilkinson at ottawa.ca<mailto:Marianne.Wilkinson at ottawa.ca>

--

Rob MacDonald,

Advocate for Tenants

"Warriors, warriors we call ourselves.  We fight for splendid virtue, for high endeavour, for sublime wisdom, therefore we call ourselves warriors."

Aunguttara Nikaya

PLEASE ADD OUR ADDRESS,
homeles_ot-l at list.web.net<mailto:homeles_ot-l at list.web.net>
to your email contact list.

THEN email your homelessness and housing messages to that address to reach the full list or to reply to a posting.

This list is not moderated; there is no editorial review.

Please try to keep messages to 200KB or less, including attachments, so that all subscribers are able to receive them.

The listserv does not permit Blind copy, BCC addresses or the use of too many Send To addresses. The best thing is to email to this list on its own.

The Alliance to End Homelessness does not verify the accuracy of submitted messages nor necessarily endorse the opinions expressed by message authors. Message authors are solely responsible for content of their messages.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://list.web.net/pipermail/homeles_ot-l/attachments/20120427/99a6f00b/attachment-0001.htm>