1. Jon Morgan says:

    Thanks for the explanation. I’d been wondering. As a low-income renter though, I’d rather have sales tax relief. Landlords will never cut our rents; they’ll just pocket the savings.

    • How much of the property tax cut landlords choose to pass on to tenants will vary depending on economic circumstance — that is, how soft the rental market is. At the moment, there is a lot of excess property available for rent, and rental rates are in decline. (See this article in Bloomberg, for example.) It seems quite possible — even likely — that landlords would be willing to pass on some or all of the tax cut in order to entice people to rent. That, after all, is the purpose of owning rental property.

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