... and most of them probably don't even know about it yet.
Council reversed itself last night and cancelled a five year plan to reduce the rate for multi-residential buildings. I found the quote from the Mayor in the Windsor Star that this was "unfair" to the other tax classes rather ironic.
Where is the fairness in multi-residential owners paying 2.74 times the residential rate? Most buildings use less services and pay almost 3 times the rate? Where's the fairness in that? I wonder what the the extra 1.74 works out to in dollars for an average $700 or $800 dollar a month apartment. What many people may not realize is that the owners are only allowed to keep a certain percentage of any tax relief, the remainder must be passed on to the tenants.
Many apartment dwellers don't think that they pay Muncipal taxes, they just don't realize that it's part of their monthly rent.
It looks like the multi-res sector is going to have to learn to get better organized. Involve local tenants associations and groups in their fight for tax fairness. What is the tax burden for apartment dwellers as opposed to condominium and home owners? What percentage of services are available to apartments as opposed to homes?
Some other things to consider on this subject are how many condo conversions are we going to see now? What is the impact to the tax base of those conversions? If the city tries to halt the conversions, what are the legal costs associated with that decision such as OMB battles? With Windsor's aging stock of apartment buildings, what is the likelihood of new multi-res units being built in the next 5 to 10 years? I've noticed a lot of new condos being built, not too many apartment buildings.
I've included a graphic of GTA rates as a quick comparison (click on the graphic for full size). It will take a little longer to compile stats from other municipalities in Ontario. Probably a good project for a public Google Spreadsheet.
Update: more info in a blog by Councillor Halberstadt - A Stunning Betrayal
