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Why is Property Tax Higher on Investment Property?

By
Industry Observer with Metro Referral 99492

I heard today that Montgomery County, MD property taxes are going up.  I was not a happy camper!

That started me thinking about the other issues I have with the county that is not providing the services we are paying for.  I sent an email to the county leaders with my complaints.

Which led  me  to wonder about the unfairness of higher taxes for investors!

For example,  WHY IS AN INVESTOR PAYING A HIGHER PROPERTY TAX  THAN  AN OWNER OCCUPIED TAXPAYER???

As I see it, landlords are paying a higher share already, because they pay county fees plus taxes on their rental income. Why penalize them with higher real estate taxes, too?  

 Where did this idea come from?  Why is it acceptable?

Who in the local and state government thinks that this is a good way to increase rental availability in the county, or anywhere it is prevalent? That makes no sense! 

Especially now, that so many buyers have become renters.   Now, that we are having a shortage of rentals in parts of the county.  Penalizing the landlords would only lead to less rental housing.

 

Comments (3)

Jon Quist
REALTY EXECUTIVES ARIZONA TERRITORY - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

I totally agree with you, and your reasons given. Makes sense to me. And you're right. Certain politicians are trying to create more renters, so as to give better investment returns to landlords. You'd thing they would see a higher rate as a deterrent to investors.

May 26, 2011 03:11 PM
Edward Peterson
eDrake - Hamden, CT
eDrake; CT

The simple answer is that government can and will do what they want; create the bills and set the tax structure to pay for it, I wish I could create my budget and then somehow find money to supple my needs and demands.

May 27, 2011 01:30 AM
Simone Bercu
Metro Referral - Palm Beach Gardens, FL
Not state specific Real Estate - GRI, e-PRO, AB

Jon, at least a few of us agree.  Maybe we can open the eyes of others.  How about designating investors as minorities or protected class?  We can then be given special favors or entitlements.

Edward, how come as individuasl we are not permited to act as irresponsible as the government.  Oh wait, now we can, too.

May 27, 2011 02:22 PM