Fort Lauderdale landlords say property tax increase means higher rent.

Fort Lauderdale landlords say property tax increase means higher rent.
By Brittany Wallman South Florida Sun-Sentinel Posted July 19 2006

FORT LAUDERDALE -- Renters don't pay property taxes, but some of them may feel the pain of the city's proposed budget increase.Some landlords say they'll raise rents to pass on a 13 percent property tax increase commissioners tentatively agreed to Tuesday night. The increase gets final votes Sept. 6 and 19 at public hearings.


The proposed tax rate of $5.23 for every $1,000 of taxable value passed easily, with little discussion. The money would help fund a $503.5 million proposed total budget, one that reflects a much sounder financial house than existed three years ago. Taxes would dip slightly for homesteaded owners, but would rise for others.Mayor Jim Naugle voted against the proposed tax rate, saying it's too high. Commissioner Carlton Moore deliberately missed the vote, walking out of the room and later explaining he opposes it.A little more than half of Fort Lauderdale's property owners use their properties as a primary residence, and thus are protected from dramatic tax increases year to year, under the state Save Our Homes constitutional amendment.The proposed tax increase would affect the other half of the city's property owners, those with commercial buildings, snowbirds who only live here part-time, and landlords with rental apartments or homes.Rental property owners have seen their property tax bills rise year after year in Fort Lauderdale, and some landlords said they're pushing rents as high as they can to recoup the double whammy of taxes and higher insurance bills."Affordable housing in Broward County? These city people, they don't have a clue, and they don't care, I think," landlord Sidney Pike said.Rental apartments are becoming scarcer, a recent housing study showed, and rents are rising steadily."I feel for my tenants," said landlord John Atkinson. He said he tries to avoid drastic rent increases but added he'd have to pass his costs on to tenants. Atkinson said one tenant is a single mom working as a nurse's assistant. His last rent increase of $35, to $695, was not easy for her.He has not told her yet that rent will be rising again.Florida law creates a special status for a person's "homestead," keeping their taxable values from increasing more than 3 percent in a year. Because of that, some people living in homes that would sell for $500,000 may be paying taxes on only a fourth of the value.Landlords have no such protection.Pike, a retired yachtsman, said two waiters from Las Olas-area restaurants, a postal employee and a limo driver are living in his rentals. He said he's agonized over the rent increases he'll have to pass on."I can't tell you want it's done to my state of mind. It put me into a deep depression. "