Laserfiche WebLink
REFORM RENTAL <br /> HOUSING TAXATION <br /> • Current rates on-rental housing other than apartments are much <br /> higher than on homes - 2.3% class rate rather than 1% for first <br /> $72,000 and 2% above that for owner-occupied homes. <br /> • <br /> Reform immediately drops rental housing other than apartments to <br /> treatment like any other property. Cut averages more than 20%. <br /> • Current rates on apartments are among the highest in the <br /> e 5 4 8% in <br /> ountry. <br /> Class rate is 3.4%. Effective rate averages - 4.3%. <br /> Duluth; 4.9% in Brooklyn Park; 5.0% in ,Minneapolis and 5.2% in St. <br /> Paulo <br /> fr cuts apartments to a flat 3% in 1998 and 2.5%in 1999, <br /> al with <br /> a further reduction to whatever the local rate is in 200 <br /> ut <br /> averages 50%. <br /> o Reform subjects rental housing to business activities tax of 1% of rent <br /> collected. <br /> ® Reform will encourage construction, which will increase supply aha <br /> 'to keep rents down. <br />