DETROIT – The next legislative session is expected to begin with a boost for the city of Detroit.
Legislation could greenlight a ballot proposal that would lower property taxes.
For years, Detroiters have paid the highest property taxes in the state while not receiving many city services. Getting a property tax cut would certainly be welcome and that’s what they’re working on in Lansing.
“Detroit will, for the first time in decades, have a property tax rate that’s comparable to Southfield, Warren, Grosse Pointe, Ferndale and Oak Park and our neighbors,” said Mayor Mike Duggan. “That’s what we’ve been trying to achieve.”
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It’s more of a tax shift than a tax cut. The city taxes vacant land at very low rates and taxes buildings higher. To even it out, Duggan is looking to double the land tax and cut the average property tax by 17%.
It’s a welcome change for many homeowners.
“It will help incentivize being able to create and influence new home ownership,” said homeowner Flor Rivera Hernandez. “Especially for the younger population such as myself.”
There is another incentive at play. The taxpayers picking up the bill on the reduced property tax bills.
“There are too many people who speculate on land and leaving it vacant,” Duggan said. “Too many people who own abandoned buildings and leave. They’re just sitting on land and not developing it.”
The announcement attracted protestors who said the system is broken. While this fix might help, Professor Bernadette Atuahene, with Coalition for Property Tax Justice, said it’s premature.
“We’re not against it, what we’re saying is you must pass the property tax reform ordinance first to clean up the assessment division - which is currently still doing these overestimates - before we implement a land value tax plan, which will increase the administrative burden on the assessment division,” Atuahene said.
Duggan said he needs to work on the plan now because in order to have a ballot proposal on the February 2024 Primary Election Ballot, the legislature needs to get on it now. With the Democratic Party in the majority in Lansing, Duggan believes all that can happen.