MOUNT VERNON — A proposed occupancy report to be submitted by landlords was once again the main topic at Monday’s Mount Vernon City Council meeting.
The city’s tax department has proposed that landlords submit a semiannual list of tenants so that the tax department can check to see whether the tenants have filed city income tax returns. Debra Tyson, city tax administrator, has previously stated that the list is the most logical, inexpensive way for the city to gather this information. On Monday, she said it was highly unlikely that any overtime would be incurred by the staff of the income tax department.
“This is a business for landlords, a source of additional income,” she said, “so why is it ridiculous to ask them to provide this information?”
The legislation would apply to landlords with two or more rental units. Tyson said skilled nursing facilities, assisted living centers, retirement communities, storage warehouses, shelters, and university or college students in campus housing would be exempt.
Local landlords disagree with the proposal. Landlord Claude Gates, president of the Real Estate Investment Association, questioned why it would apply to those having only two or more units. If legislation is passed, it should be applied fairly to all, he said.
He also said the legislation as written doesn’t say how it will be administered.
“What if a landlord has a disagreement with the tax administrator?” he asked. “How will that be handled?
“[The Real Estate Investment Association] would like to see city council vote this down,” he said.
Mount Vernon resident and landlord Steve Kennedy said he was appreciative the city listened to landlords the last time this issue was raised, and said Tyson brought more information this time than was gathered previously. However, he questioned some of Tyson’s statements.
According to Tyson, there are about 3,000 rentals in the city. This number, said Kennedy, does not include industrial tenants.
“I think that will add to the workload [of the tax department],” he said.
Kennedy said he took a sampling of his tenants, and found 40 percent were single, 14 percent married and 46 percent had other occupants in the unit in addition to the tenant listed.
“If [Tyson] wants us to report our tenants, who do we report?” he asked. “Do we report the one on the lease? Everyone who lives there?”
Using his sample percentages in relation to the 3,000 units in the city, which would potentially involve more than 8,000 individuals to track, Kennedy said again that he believes Tyson has underestimated the work load on the tax department staff.
“I believe ... it would be a violation of their privacy rights,” said George Small, past president of the REIA and owner of 35 units in Knox County, referring to listing all occupants on the report. “It doesn’t define tenant.”
Small also said the penalty for not filing the occupancy report needed clarified as to whether the fine was applied per person or per unit, adding that other municipalities which have a similar ordinance are more specific. He also said he has spoken with landlords in other municipalities, who have said their ordinance is not enforced.
Resident William Austermiller also spoke in opposition to the proposed legislation, saying it was a privacy issue and that the city tax department could work directly with employers to track who should be filing city tax returns.
Damien Phillips of East Chestnut Street spoke in favor of the proposed legislation.
“Why, if I rent instead of own, do I think I could get away without paying income tax?” he asked. “An honest landlord would want to make time for this duty.
“Why do other cities have this and not us?” he continued.
“... As a taxpaying citizen I would be let down if it wasn’t passed.”
The legislation received its second reading Monday, and is slated for a third and final reading Monday, Nov. 24. Another public hearing will be held prior to the Nov. 24 council meeting so that additional concerns, comments or suggestions can be heard.
