Jan 17, 2008 11:28 pm US/Eastern
Renters-Landlords Say Tax Amendment Is A Raw Deal
HOLLYWOOD (CBS4) ―
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Denver's apartment market is beginning to tighten and rent prices are going up.
CBS
Hollywood l
andlords who say they cannot afford to continue increasing their rents to tenants in order to pay their exorbitant property taxes say they are getting a raw deal with Florida's proposed Property Tax, and explained how to CBS4 News.
Debbie Johnson and her husband are happy renting in Hollywood, but rising costs may force them to leave their flowers and South Florida behind.
"It's really hard; we live paycheck to paycheck," said Johnson.
The Johnsons rent for their three bedroom home for $1,400 a month.
Landlord Norm Berube owns several properties in Hollywood and manages several others. He says over the past several years taxes and insurance on non-homestead properties skyrocketed.
"In the last two or three years we've had our taxes go up 300 percent, our insurance go up 200 to 300 percent," said Berube.
Those rising costs forced landlords into a corner. They either raise their rents and possibly lose tenants, or subsidize the rent,keep the tenants, but lose money.
"We're losing close to $2,000 a month on this place," said Berube.
Wednesday night landlords met in a public meeting to discuss their options.
One man stood up and said: "The recent problem with property taxes is killing cities across the state of Florida."
With "for sale" signs popping up all over, Berube says the property tax amendment on the ballot later this month would bring little relief. It would only cap the taxes on non-homestead properties at ten percent a year. He wants everyone taxed evenly.
"I think it's got to be fair across the board. We need a tax that's just fair across the board. I don't see any reason why a young couple should have to pay four times as much in taxes as someone who is in their 40's and 50's."
Debbie Johnson agrees. She would love to buy this home, but the taxes would be around $5,000 a year.
"The middle class people just don't even have a say and it's very hard to live here," said Johnson.
Supporters of the property tax amendment say it will help regardless, especially homeowners with a homestead. They will see that homestead double, and be able to take their tax bill with them when they move. Landlords and renters though say the cost to them is simply too high.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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