File under “symbolic gestures.”
Floyd County resident shows resentment to tax rates by paying bill in coins, by Daniel Suddeath (News and Tribune).
Alford’s payment totaled $21,333.09. He paid in a similar fashion last year, except instead of coins, he used dollar bills to account for a $9,553.46 installment on a $19,106.92 tab.
Alford said he doesn’t want to do the same next year, but he won’t hesitate if rental property taxes continue to remain high in his estimation.
“To me, it’s ridiculous,” he said. “We don’t get any deductions on rental properties.”
The property tax increases for rental properties don’t just impact the landowner, Alford said. The bill will have to eventually be passed down to tenants if Alford is to stay in business.
Alford said he’s put in over 800 hours of work into his rentals this year, and will likely only claim a profit of around $10,000. Only one of the 14 rentals has a mortgage on it, according to Alford.
He calculated that nearly 29 percent of every rental dollar he receives goes directly to property taxes.
By my calculation, these numbers suggest an average monthly rental price of $400 for Alford’s 14 rental units, assuming the houses have not been subdivided. In turn, this suggests a gross of around $67,000 each year before property taxes and expenses.
We don’t know the cost of repairs and refurbishments, but “800 hours of work” comes out to 15 hours of labor per week, spread among 14 properties. Assuming the yards are small, that’s about enough time to mow the grass. And, remember, only one of the properties has a mortgage.
Interesting. Do the numbers add up?
