Count me among those opposed, at least until someone (anyone?) provides a coherent explanation as to why rental property ownership is not a business activity to be taxed at the same 3% rate as my own.CLERE: You make the call, by Ed Clere (News and Tribune).
STATEHOUSE — In last week’s column, I noted that there were 22 days left for a vote on constitutional property tax caps. Now, a week later, we’re down to 15.
I didn’t hear from anyone opposed to the caps, which are contained in Senate Joint Resolution 1. The resolution was adopted by the House and Senate last year, and the Senate already has adopted it again this year.
After reading the column, it also strikes me that the Tribune is providing column space each week for what might become a partisan forum. Some might say that it already is. Once the Democrats have a candidate in place for the next election, does he or she get equal time? Is equal time merited now?
Kindly note that I consider Ed a friend, but I believe the preceding to be valid considerations worthy of answers.
There’s no economic explanation for the 1-2-3 property tax caps. The only explanation is political. It’s simply that way because most voters do own a primary residence but do not own commercial property. Most larger commercial property owners (like REITs) are out of state and do not vote at all.
ReplyDeleteAlso, no one has explained to me why rental properties must be a business to be regulated?
I am regulated in whether I wear a seatbelt. The state does not care if I wear a seatbelt when driving in my driveway but they do when I’m in the public roads. Since they regulate seatbelts, does that make me a business when I drive?
I am regulated in how I build my house. The city will not allow me to build a house that violates building codes and zoning ordinances. It does not matter whether I ever invite anyone into my house or not, I cannot legally build a house with faulty plumbing and electric, even if I build the house by hand. Does that make my house a business?
I am regulated in whether I smoke pot. Even if I grow it in the back yard and consume it all myself, I go to jail if I smoke it. Should it be legal for me to grow and smoke pot just because it’s not a business? Even if you are for the legalization of marijuana, does your rational hinge on its status as a “business”?
Furthermore, can one of the landlords define “business”? To my knowledge, there is no legal definition of a “business.” The tax code defines corporations, partnership and so forth, but they can be not-for-profit and presumably non-businesses. The tax code does not define “business.” First, if you’re going to claim that you should not be regulated since you are not a business, define business so we can all make sure we are on the same page. If there’s some constitutional right that your rental unit cannot be regulated, why is it that so many other cities regulate rental units every day without problem?
Also, if you can define “business,” I suspect whatever definition you come up with would include a company such as Camden Property Trust. Camden is traded on the New York Stock Exchange (Ticker CPT), has 1,800 full times employees, $1.4 Billion in net tangible assets, and $630 Billion in operating revenue. Camden’s sole business is being a residential landlord. What is the difference between Camden and owners of Ekin and Culbertson rentals? Other than size, nothing! There is no legal or economic distinction between the renting of a unit by Camden and renting a house on Ekin. How can you say one is a business and the other is not?
Even if they were not a business, why does it matter? I am not a business when I don’t wear a seatbelt but I’m regulated nonetheless.
I don’t care whether my house is taxes at 1% or 2%. I know the city needs revenue if they are going to provide quality services. I’m going to be taxed somewhere (if not property than income or sales) if someone is going to pick up my trash and put out the fires. My only gripe is that I don’t want to hear about property tax caps until someone tells me where the missing revenue is going to come from.
I agree with your assertion regarding the tone of Mr. Clere's columns. I take another, smaller small town newspaper and the local representative also provides a report of the goings on in the capitol. However his relases do not carry the same partisan tone as does Mr. Clere's. Perhaps the Tribune should start charging ad space rates for Mr. Clere's writings...
ReplyDeleteI often wonder if some, or all, of his column words are coming from the same source as the political ads in the last campaign. You know, the ones he had no "control" over.
ReplyDeleteOn the other hand, does Mr. Clere's column fall under the same Tribune policy as, say, Roger's column?
The answer to that question could raise several other questions.
FYI, I bill the newspaper for my columns and remuneration comes from the parent company. I'm responsible for reporting the income. No limitations have been placed on my subject matter.
ReplyDeleteIf I were to run for office, my guess is that those parameters would change.
"If I were to run for office, my guess is that those parameters would change."
ReplyDeleteThat's the question. Okay, where are the friendly Tribune folks who lurk around here? If any are around, could you also answer for me when Indiana State University moved from Terre Haute to Bloomington?