New Law Making Landlords Pay Sales Tax On Electric Bills Makes Housing Unaffordable For Tenants

A new law in one state that makes landlords pay sales tax on their electric bills, is making housing an affordable for tenants. The law makes landlords more likely to have to raise their rents, and they will pass those costs on to the tenants.

[harryhunter]

Until lawmakers realize increasing costs to landlords only increases rent. Not a solution to affordable housing

[natrixxvision]

Why does the landlord have to pay that sales tax?

[jimmyday]

Instead of raising taxes, governments should work on lowering costs and expenses, like a business does. Gee. What a concept!

[jimmyosmer]

In South Carolina they don't charge sales tax, instead they call it a franchise fee .

[Electronzap]

This is an expensive country. We need to stop trying to house everyone. Let the government figure something out for them instead of private individuals who need to make money.

[jonathanjones]

The politician's need a new car they pass or increase a tax, they need to buy more votes they tax some more, this cycle needs to stop.

[kathryndockrey]

In Nova Scotia we already pay sale tax on our electricity

[newguyguy]

The landlord is NOT the utility company and it's the utility company is the one making the SALE of service. This makes no sense at all! I hate to hear that another somewhat landlord state is headed in the wrong direction.

[sidwhiting]

Politicians pass these laws knowing tenants will like it and vote for them, all the while not realizing they just voted themselves a rent increase. Why do I believe this? Because many politicians also own real estate, have wealthy donor constituents who own real estate, or invest in REI Groups. They're not so dumb as to cut their own income. It all just passes through, with a healthy dose of Govt inefficiency snacking on the revenue stream.
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LLs who treat rentals like a business are wise enough to increase the rents to cover any increase in expenses and/or find ways to reduce tax burdens in other ways. The easiest way is to raise rent, but if that's not possible (example, in rent control areas), then there are usually other offsets.

[idocastle]

you have to be a big business owner to escape the business owners are stuck with the tab

[georgewagner]

In new york we already pay taxes on utilities. We pay taxes on everything except groceries

[johnniebeavers]

I'm a landlord and I don't pay my tenant's power bills

[williamswanson]

What happens if the utility is in the tenants name?

[madderscience]

is it common in kentucky to include electricity service in rent? at least in seattle vicinity renters typically must get electric service in their own name, only exceptions being rooming houses, attached ADUs and such.

[sculptor]

Why are landlords so disgusting, or is it just this guy?

[deitrapugh]

Yes! That's true. It would cause a higher rate for the Tenants.