Cities in Serious Trouble as People Can't Pay Property Taxes
City research in Vancouver shows found 25% of residents can't pay property taxes and a whopping 50% struggle with rent.
The story is not just about Vancouver, Canada. Rather it applies to cities globally, all facing a similar setup.
Please consider Vancouver Mayor is Worried Over Property Tax Collection.
Kennedy Stewart said Sunday the city could lose up to $500 million from its operating budget, which would be “absolutely devastating.”
“If we lost half a billion dollars in revenue, we would have to really burn through all our stand-by cash we have, all our reserves, and we may even have to sell some city lands in order to meet all our obligations, so it’s a very serious situation,” he said.
In addition to property tax concerns, sales tax and fee collections are in the gutter, everywhere.
And if people struggle to pay the rent, landlords in turn cannot pay their bills, including property taxes.
This setup is not unique to Vancouver. It's playing out across the US and Canada.
Mike "Mish" Shedlock