Detroit Today: Duggan’s Detroit land tax proposal, explained
The proposed Land Value Tax Plan would double the property tax rate for owners of empty or neglected property.
Detroit’s property taxes are among the highest in the nation, the Citizens Research Council of Michigan reports, with population decline over the last several decades contributing to the city’s significant increase in vacant or neglected land.
In an effort to discourage blighted property in the city, Detroit Mayor Mike Duggan proposed a new Land Value Tax Plan, which would give 97% of homeowners an average tax cut of 17% while doubling the rate for owners of empty or neglected property.
Some city council members oppose the idea, however, with a number of them halting a vote last week to allow the Land Value Tax to pass the Michigan Legislature. Among them were Detroit City Councilwoman Gabriela Santiago-Romero, who joined Detroit Today on Tuesday along with Detroit housing blogger Alex Alsup to discuss the plan and its potential impacts on Detroit residents.
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Guests:
Gabriela Santiago-Romero is a Detroit City Councilwoman representing District 6. She wants to delay the vote on the Detroit Land Value Tax Plan until November 2024 to allow residents more time to understand the policy.
“I believe in proper process. I believe in democracy, and quite frankly, not enough of us are voting on primaries [in February],” said Santiago-Romero. “That means that there’s going to be a lot of people whose voices are not going to be included in this process.”
Alex Alsup is the vice president of research and development at Regrid, a property data company. He blogs on his Substack “The Chargeback” about property tax foreclosure and Detroit housing issues. He supports the Detroit Land Value Tax Plan. He says the plan will shift the property tax burden from homeowners to speculators who own vacant land.
“In Detroit, about 96% of a property’s assessed value comes from the structure on that property in the case of residential properties,” said Alsup. “So, you know, this proposal would reduce the weight of the improvement and increase the weight of the land.”
Listen to Detroit Today with host Stephen Henderson weekdays from 9-10 a.m. ET on 101.9 WDET and streaming on-demand.
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