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Rent could go up because of CATS property tax

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Posted: Apr 26, 2012 6:04 PM by Michael Shingleton
Updated: Apr 26, 2012 6:58 PM
Source: WBRZ

  Rating: 5.0 (1 vote)

Topics: CATS, property, tax, increase, rent

BATON ROUGE - Due to rising property taxes, landlords that own property in the city limits may pass those costs onto renters.

On a $100,000 property, owners will pay an additional $106 a year in property taxes which could send rent up just as high.

Property owners we spoke to said those costs will have to trickle down to the consumer whether that be through rent of goods and services.

Wesley Moore of Cook, Moore and Associates, a company that appraises property, said it's the tenants who will ultimately pay the price.

"The landlords in the short term will have difficulty passing that along, so they will cover the increased cost for a year, two, maybe three," Moore said.

But when lease agreements expire, Moore predicts most owners will offset their expenses through the wallets of their tenants.

Robin Hudson owns about 20 rental properties scattered near LSU, all of which are subject to the tax increase.

Hudson said he plans to pass on roughly four thousand dollars through his various properties.

"We can't absorb anymore costs. We have to pass this along. Nothing is free in this world, and it has to be paid and when a business gets more expenses, they pass it along, they don't absorb it," Hudson said.

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