Rental Tax? Not Smart Policy!

  

2% Rental Tax
The City of Tucson is looking at ways to increase its revenue for the 09/10 budget. Because of an unforeseen shortfall the Mayor and Council asked a committee of various city staff to make a recommendation for new revenue streams. The committee came back with $20 million worth of new taxes including a 2% tax on all residential rental property which would bring in an estimated $12 million. The Tucson Association of REALTORS® opposes a rental tax because of the regressive nature of such a tax. The Tucson Association of REALTORS® is committed to finding solutions for affordable housing and affordable rentals are a critical part of affordable housing. We encourage everyone to talk to their City Council member and let them know we do not support a rental tax. (From Tucson Association of REALTORS® Public Affairs Update)

I expect to see more communities attempt similar efforts to help defray budget shortfalls in other areas.  I agree with TAR's position on this, as a tax on rental properties will end up coming out of the renters' pockets.  While I realize that local governments are going to have to find money somewhere, somehow, renters are not a good target.  The gain is minimal and negatively affects those who can afford it the least.

This day and age requires creative and well thought-out plans to fund governmental spending.  Quick solutions have historically proven to be more harmful than beneficial to the community.  I implore our leaders to employ forethought and utilize vision when looking for methods to dig out of their budgetary messes.

The "same old" is not good enough.  Those communities fortunate to have forward thinkers in positions of stewardship will reap the rewards of improved government, not the continuance of the status quo.