Landlords should have to pay income tax on their rental properties regardless of whether they're rented out or not. ( gothamist.com )

cross-posted from: lemmy.crimedad.work/post/12162

Why? Because apparently they need some more incentive to keep units occupied. Also, even though a property might be vacant, there’s still imputed rental income there. Its owner is just receiving it in the form of enjoying the unit for himself instead of receiving an actual rent check from a tenant. That imputed rent ought to be taxed like any other income.

ThereRisesARedStar ,

The state should stop enforcing the legal rights of landlords to own property and exclude people from its use through physical force, and should organize the people enough that they can defend themselves from retaliation to this change.

JasSmith ,

This is just tinkering around the edges. We need land value taxes. This is a guaranteed way to solve these massive housing crises occurring in so many Western nations. LVT ensures expensive land is utilised better. Either by highly productive businesses, or higher density dwellings. Either way, society makes more efficient use of the land, and prices are constrained. It's an excellent way to ensure land banking is disincentivised, and that rentals don't stay vacant. Even Adam Smith was in favour of an LVT. Economists are almost unanimous on its efficacy. The only reason we don't widely deploy them is because it will hurt house prices and voters don't like that.

uniqueid198x ,

landlords don’t like it either. At least in NY, the lanlore lobby is incredibly strong.

Olgratin_Magmatoe ,

A LVT/georgism system would instantly kill the profit margins of all landlords around the country, so they will do everything in their power to prevent it from happening. All the more reason to do it.

uphillbothways , (edited )
@uphillbothways@kbin.social avatar

Though I don't think this is necessarily a bad idea, why not require rent payments be rewarded with a proportion of equity shares equal to rent (less a small prercatage for upkeep)? That's entirely within the capitalist model but drives value into the hands of the people/occupants where it belongs. Aggregating land holding to a small class of the population is clearly untenable. Give people their equity back. Seems more direct.

ATQ ,

You’re just describing a mortgage.

Spacebar ,
@Spacebar@lemmy.world avatar

A penalty for units that have been vacant longer than 6 months makes sense.

Units need to be rehabbed, but keeping a property uninhabited for long periods of time should have a disincentive tax applied to them.

psycho_driver , (edited )

I don’t know about this, but the non occupant owners should have to pay obscene property taxes and then reduce the rates for owner-occupants to a reasonable level.

bluGill ,

If buying a house isn't right for you - and for many renting should be the better option - then you will be forced to pay a lot more so the landlord can recover not only the cost of the building, but also that much higher taxes. In effect you are pushing people who really shouldn't buy a house to buy one anyway.

Zarxrax ,

If they keep the price reasonable to begin with, then the unit doesn’t go vacant, and they don’t have to pay the vacancy tax.

TAG ,
@TAG@lemmy.world avatar

Landlords do have to pay an income tax on property regardless of whether it is occupied or not, it is just that when a property is not being rented, it generates 0 income and 30% of $0 is $0.

Do you mean some sort of land appreciation tax?

sneakycow ,

Don’t forget about real estate taxes in lieu of an income tax when empty. They are due whether a place is rented or not.

bluGill ,

Landlord should always have a few not rented places so that when someone is ready to move there is a place they can go. They also should be doing major remodels and upgrades approximately every 30 years which means a long stretch of not occupied.

bouh ,

That’s called hostels or inns etc. Right now if places are empty it only means someone can’t come because it’s not for rent.

Keeping the place for repair is legitimate, but it’s not what’s done either. It’s be easy to make an exception for repair.

bluGill ,

hostels and inns serve a different niche - temporary housing is important, but they don't give nearly as much space. If you want to live someplace for a year or more then you want more space for your stuff (how much is personal)

Shalakushka ,
@Shalakushka@kbin.social avatar

By major remodels and upgrades I assume you mean slapping a coat of white paint to cover the cracks and mold, right?

bluGill ,

The coat of paint should be done every 5 years, or when a tenant moves out.

Major I mean things like replace the HVAC system, rewire to add GFCIs, replace windows with something better. If it doesn't cost $20,000 it isn't major. Most landlords do not do this, but it really should be part of the cost of doing business.

BRINGit34 ,
@BRINGit34@lemmygrad.ml avatar

youtu.be/uT5tQV3aPik?si=LKDI44ZDOvcMPYJp

lightnsfw ,

That’s what property tax is for.

shanghaibebop ,

Raise the property tax, exemption for owner occupied, then tax the rest.

bouh ,

They’re not expensive enough apparently

Blaze OP ,
@Blaze@discuss.tchncs.de avatar

Feel free to react here or on !economics

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