Tax would only affect high-rent housing


By Zach Colick
Arizona Daily Wildcat
Wednesday, May 5, 2004

Student renters shouldn't be worried about paying the city's proposed renter's tax, as city officials say the fee will only impact students paying more than $600 in rent.

The extra monthly fee would only be tacked onto apartments that have a monthly rate of more than $600 and would cost renters between $10 and $15 per month, said Carol West, Ward 5 council member.

"Six hundred dollars per month is where we want to start it," West said. "If your rent is $601, then you'll pay the tax."

Rick Mucklow, general manager at NorthPointe Student Apartments, said NorthPointe plans on paying the fee instead of holding renters responsible.

"We would just absorb the tax and not let the tax be paid by the students," Mucklow said.

Mucklow said the new fee that NorthPointe would pay as a service to their residents shouldn't be a burden on the complex's pocketbooks.

"We only have 24 apartments with rent over $600, so it would be minimally felt. It's only an additional 13 bucks per month," Mucklow said.

Dan Switter, property manager at Entrada Real Apartments, said all apartments at Entrada would be taxed even though each individual lease is under $600. When added up, each three- or four-bedroom lease in the apartment comes out to $1,800 or $2,400 respectively, he said.

Switter said he worries Entrada could lose students to apartments that don't have joint leases like Entrada. These apartments tend to be around $450, rather than $600.

Tina Perez, community manager at University House on East Eighth Street, said student residents would have to pay the fee if they rent from University House. Although she is against the fee, she agreed that the $10 to $15 fee shouldn't be burdensome.

"The new taxed fee would be added to our current monthly rates, but it shouldn't be felt that much," Perez said.

Perez noted that only the one-bedroom apartments at the complex are more than $600 per month.

The renter's tax hasn't been passed and may not be. Another public hearing is set for June 21 to discuss the matter with the Tucson community to decide the fate of the fee and to figure out the financial budget for 2005. The budget has to be passed by July 1 to start the new fiscal year, West said.

West said, after a public hearing April 26, she could see why the City Council wouldn't be voting on the measure until June or July. She added that public

opinion on the issue is heated and may not be passed by the City Council after such a negative response from the public.

West said the current financial state of Tucson is in bad shape and the tax's purpose to help balance the city's budget, which she and other City Council members agree needs to be amended.

"We're in bad financial straits right now," she said.