It’s a spiral.

Locally, property taxes on rentals are based on the rent being charged. Officials worked up a GROSS RENT MULTIPLIER for each neighborhood based on retail home sales and rents in that neighborhood.

Meanwhile, the govt almost doubled the value of the land which was an instant tax increase. Retail home sale prices also soared, making the multiplier higher.

Because the taxes went up we needed to raise rents just to stay even.

Now as they examine this year’s increased rents the taxes will go up based on the new numbers.

A spiral. The machine that calculates the tax raises the tax which causes the tax to up up again. A never ending Spiral.

GRMs are one of the worse methods to value anything real estate. So am I surprised that government is using any rule of thumb at all?

Our local govt brags they have not increased rates in years, “Vote for me!”

But the assessments have increased dramatically, thus bringing in more tax money.

This year when I disputed the increases on almost all of my doors I explained that I didn't jack the rents up astronomically like so many others did in my area. I explained that I am in the business to make money, but not to rip people off.

I could have, and maybe should have, sold off a few of my SFHs and made a killing. I decided I wanted to stay in it for the long haul though.

Not sure if it helped, but every one of the disputed increases was dropped. The only down side was my primary residence went up and I couldn't complain too much or look like I was just complaining about everything.

It's not supposed to be a spiral. The Govt simply raises taxes, and the rich landlord is supposed to eat the increase with a lower income...

That's how the vast majority of the population thinks this works: raise taxes on "the rich" who will docilly sit by while politicians pick their pockets. It never ends up working that way. The rich are clever and have access to resources to find strategies to reduce their taxable income, while the poor and middle class who don't want to spend the time, money or energy finding ways to protect their income end up paying the lion's share of the "free" stuff that was supposed to be paid for by taxes on the rich.

I don't know how many times the cliche "There is no free lunch" has to be repeated, but apparently at least once more because some people think they can vote their way to prosperity.

The only thing I learned from the assessor... charge the highest rent you can. Be the high # in the GRM calculations. My local assessor throws out the low #'s (admitted to me) and calculates it. Assesses your property based on the average.

Ray-N-Pa,

Rentals are topped at 2% and owner occupied is topped at 1%.

I didn't dispute it because I had the taxes down to poverty level while I was building/rehabbing the property. I got done, got my occupancy permit and moved in. They caught up the next tax cycle. While I didn't like paying more taxes it was a fair assessed value considering.

T: I have five duplexes all identical, in the same town. Three on one block, two on another. Every single one of them is assessed at a different value. I have asked how that is, but get the run around every time. I just fight it and get it lowered a little each time.

Jennings: I hear you on the unfair part. Cost of doing business doesn't help with the sting. I think the mortgage exemption is maybe 3k. I no longer have a mortgage. Wish they allowed an exemption like that for rentals.

zero- keep appealing to them on the duplexes. One year I had a 50K spread on a 8 unit (identical). I appealed, complained.. asked for a little common sense. 8 months later, they hired an outside appraiser and came up with identical assessments. Fast foreword 3 yrs, they are starting to creep apart again. But currently only like 5k spread....

How can the school change state law?

Zero- A local govt entity can pass a referendum. This gets put on the ballot, the local people vote y/n for it. Simple majority wins.

Politics.... after that you lost me to the rage I guess.