Chicago Address Budget Shortfall By Taxing Condos For Services They Don’t Receive

Chicago will be eliminating a $75/unit rebate given to condominiums of 5 or more units in their 2012 budget. This rebate was started in 1984 because the city taxes these condominiums yet they do not provide any garbage service to them.

Mayor Rahm Emanuel indicates:

Eliminating this garbage rebate for condominium owners, a step also recommended by the city’s inspector general, is the fair and honest thing to do for Chicagoans.

Seriously – how is charging money for nothing exactly fair and honest? Let’s see – you pay me taxes, and I’ll refuse to provide the services you pay for. Sounds like Mayor Emanuel has no idea what the words “fair” nor “honest” mean. Perhaps we should send him a dictionary – or emails with online links to the true meaning of those words.

Sidewalk Responsibility: Bad Tax Effect for Condominiums

Read an article in the ffwdweekly here in Calgary where a local community identified sidewalk replacement as a cost that the local residents and businesses shouldn’t have added to their municipal tax roll – but should be a cost burdened by the entire city.

For many municipalities, Calgary included, sidewalks, alley paving and streetlights are all charged back to the “using” residents and businesses. While not universal, it’s relatively common and not an unusual process.

What I would object to, as a condominium owner, is that condominiums already are disproportionally charged taxes in Calgary under the fair market value (where all properties pay a set percentage of their value each year as tax). Fair Market Value taxation isn’t fair to many condominiums. For instance, multi-unit apartment style does not receive garbage pickup from the municipality. They have to pay for private pick up, while still paying the city for garbage pickup which they don’t deliver on.

For sidewalks, it wouldn’t be uncommon in Calgary with large lots, to have a single residence with 30 metres  of sidewalk or more. For multi-unit condominiums, that could work to as low as 2 metres/unit. As in the case of community requesting that “the whole city” pay for their new sidewalk, they are significantly underpaying their share and offloading it to more eco-friendly condominiums which have significantly smaller land and services footprints.