As a young person making the big leap from renting to owning a condo in downtown Milwaukee, I have a totally new perspective on things as a result of my experiences and newfound tax responsibilities. The heavy burden of Milwaukee’s property taxes, some of the highest in the nation, have made me realize just how big a portion of my rent was eaten up by county spending.
It got me thinking, why shouldn’t renters understand why their payments go up with each renewal of the lease and exactly how much of a building’s property tax bill is their share? According to the latest HUD statistics, almost 40% of the population of Milwaukee rents, that’s a huge number of people who never see a tax bill, despite being impacted by it through their rent checks. Why do you think property taxes downtown get so high? I think it’s largely due to the insulated renters who blame their landlords every time rent goes up rather than understanding the true source of their pain, property taxes.
So here is my proposal:
Just like a new home buyer sees the actual cost of their mortgage if they pay every payment(through the fair lending practices), a renter should see exactly what portion of the property taxes for their building they are paying for and how much of each rent increase is due to property taxes. Let them see and feel the pain of their voting choices.
Now, we can go back and forth all day about the equation to calculate a renter’s share of property taxes but, I would say keep it simple. Total property taxes due for the building/# of units but, I am open to suggestions.
I will be reaching out to my alderperson on the topic and I will share any responses I get here. In the mean time, what do you think?
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Tags: apartment, buying, condo, Milwaukee, property taxes, rent, renting, Taxes
This plan is fantastic.
I would like to be a homeowner and a landlord at some point, and can see how this policy is helpful from that vantage point.
Furthermore, as a current City of Milwaukee renter, I would really like to know just how much property taxes are affecting my payments.
Keep us updated on what your alderman has to say…
Or like I said before, just live in Washington County. This sales tax increase just passed in Milwaukee Cty. was passed under the guise of “easing” the property tax levy. Guess what? They pulled the same garbage in the early 90s! Washington County, however is actually trimming dollars off of the levy. I live in Hartford, drive downtown everyday. Between less expensive real estate and property taxes, the difference in gas and insurance expenses makes up for it. Disadvantage: Milwaukee has more to do for the youth. Dollars are dollars though.
I don’t really think that this is a good idea.
The feasibility on this idea is low. I have never seen a single document in writing from my land lord–legally, a written contract isn’t totally necessary. While this may be naivete on my part, I would guess that the majority of those 40% are month to month with no written contract unless problems have arisen. Without providing undue burden on land lords and managers, I don’t know how we pull this one off. Do you require land lords to provide this documentation? If so, how is it enforced? Is it even legal to enforce such an ordinance? I sort of doubt it. On the other hand, do you want the the city/county to spend the money to mail out notices to all of the renters every time a new rent is taken up? I don’t think that this direction is going to gain any real traction.
Now let’s say just for arguments sake that as home ownership increases and awareness of property taxes increases, property taxes actually decrease. We could work to see that 40% of renters go down. I am going to go out on a limb and say that the vast majority of suburbs have rental numbers under that 40%. The reason, you may ask. Zoning in suburbs does not allow for many renters. So…push the suburbs thru regionalism to recognize that our region needs a zoning plan to spread out renters and you may see your little scenario play out.
If you really want to get the most bang for your activism, I would focus on school board elections. I think that something like 8% of the registered voters vote in the school board. They are going to kill us this year with their share of the property tax increase pie.
If I have overlooked something, just let me know.
best