Art and Design Online Blog

Who Pays Property Tax?

July 21st, 2009

Many states and localities have differing property tax rates for different owners of real estate. In particular it is common to give a tax break to home owners while charging more for landlords. What goes unnoticed, though, is that renters effectively pay that property tax. After all, imagine for a moment that the tax rates on rental properties were doubled. Would investors simply decide to operate at a loss, or would they pass that cost on? Whether we like it or not, a customer (a renter) must pay all the costs of operating a house, as well as the profit that creates a reason for someone to provide that house. This means that in many areas, the poorest people – who are typically renters – are forced to pay higher tax rates.

Entry Filed under: Miscellaneous