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Mayor Mike Duggan announces Land Value Tax plan to cut homeowners’ property taxes by 17% on average

Posted at 5:49 PM, Aug 31, 2023
and last updated 2023-08-31 18:27:30-04

DETROIT (WXYZ) — WXYZ’s Brian Abel asked, “This is where you grew up?”

“Yea we call it hashtag Hick's house,” said Cortney Hicks, Detroit resident. “The second black family on the block, definitely watched it change.”

Some of that change is seen through Cortney Hicks’ eyes. Blight in Detroit that’s turned into vacant spaces. Spaces are sometimes bought up by people with no intention of developing them.

“We want you know, revitalization. Greenery, trees. We want what other folks have on the other side of 8 Mile, we want it too,” said Hicks.

“Tell me about the maintaining of this home and how much you pay,” said Abel.

“We did decide to take out a second mortgage, it was fine. To make some enhancements, some changes. All of a sudden, the mortgage went up...$2, 300. We’re like what is going on? And it had to do with the property taxes.

Taxes that are costing Detroit homeowners more. More than people, speculators who own multiple empty lots and do nothing with the properties.

“It just brings up little… a little bit of anger. The imbalance. The fact that you’re sticking it to the homeowner that’s doing their best to keep the home up,” said Hicks.
“It’s going to take an entire army to fix Detroit's screwed up tax system,” said Detroit Mayor Mike Duggan.

Today, Mayor Duggan announced a plan to knock down that imbalance, cutting the average homeowner’s property tax by 17%.

“If your bill’s a $1000 it will be $170, if your bill’s $2000 it will be $340 and that’s an average,” said Duggan.

The plan being introduced in the legislature next week, would bring property taxes in line with neighboring communities and double the taxes on land for abandoned buildings and vacant or underbuilt properties.

A group, the Coalition for Property Tax Justice says the plan puts the cart before the horse. Property assessments need to come first.

“We’re not against it. What we’re saying is you must pass the property tax reform ordinance first to clean up the assessment which is currently still doing these over-assessments before we implement a land value tax plan,” said Dr. Bernadette Atuahene, USC Professor.

“We see these folks over here saying do the assessment first. What’s your response to that?” asked Abel.

“I think that first of all this is stage legislation. So, I think first of all we’re talking about apples to oranges even though they connect to our residents' issues and problems,” said Fred Durhal III, Detroit District 7 Councilmember. “I think the majority of homeowners want to see their taxes lowered 17%. As far as property tax reform, ordinances are coming."

This is being introduced by state lawmakers because the city can’t raise taxes without a vote by the people.

So, this must be passed and signed by the governor and sent to the city to get it on the ballot. Council hoping it'll be the February primary ballot.