The big difference between property-rich, cash-poor people and poor-poor people is that property-rich, cash-poor people who can’t afford their tax bills have the option to sell their valuable assets and get rich-rich, while poor-poor people are just poor.
But actual poor people tend to vote less frequently than homeowners, so City Council members want to raise taxes on the apartment buildings and mixed-use buildings where real poor people live, in order to cut taxes on lower-income people who have the option of becoming rich.
Ryan Briggs explains:
Designed to soften the tax blow for owner occupied properties, homestead exemptions would skew costs towards other types of residences and the hospitality sector. Without exemptions, hotel and apartment owners would actually see a combined $4 million drop in taxes. With the recently proposed $30,000 exemption for owner occupants, $16 million in taxes would be shifted back to the hotel/apartment sector, resulting in a $12 million hike.
There is a similar projected rise in taxes for 15,000 stores with attached dwellings. They will see a tax hike under AVI, like most residential properties, but this will actually be exacerbated by cost of homestead exemptions. The city has already proposed expenditures to offset this rise, but legislators may also want to think twice about the similar impact AVI will have on apartment dwellers and the hospitality industry.