State, city leaders announce plan to cut property taxes for Detroit homeowners
(CBS DETROIT) - Homeowners in the city of Detroit pay some of the highest property taxes in the entire state.
New legislation aimed at giving Detroiters a break will soon be introduced in Lansing.
"I was extremely happy," said Jacinda Cason when she moved into her new home on Detroit's east side. "It has a large backyard [and] plenty of space for my grandkids to play around."
It was the perfect home for Cason and her family, but she says the property taxes took her by surprise as a first-time home buyer.
"It can be high, including the other cost. We have tremendous water bills. Our car insurance, and then our property taxes on top of that, it's a bit overwhelming for a first-time home buyer," she said.
The Land Value Tax Plan would cut property taxes by 17% while more than doubling the tax rate on land, including abandoned buildings and vacant lots. Urban farms, community gardens and community spaces won't see a tax increase under the plan.
"It's time for us to not have to pay to board up on the blighted property. It's time for them to pay their fair share," said state lawmaker Stephanie Young.
Young is expected to introduce the legislation in Lansing in the coming days.
Mayor Mike Duggan and other city leaders joined her to announce the proposal. Duggan says 97% of homeowners would get a tax cut under the plan.
"Detroit will, for the first time in decades, have a property tax rate that's comparable to Southfield, Warren, Grosse Pointe, Ferndale, and our neighbors."
Cason says she is in support of the plan and believes it can have a huge impact on the city of Detroit.
"We're losing residents because of the burden of property taxes," she said.
The Coalition for Property Tax Justice says the plan isn't addressing another issue. The organization says low-valued homes in Detroit are still being over-assessed, and passage of the plan could potentially make matters worse.
The coalition is urging the city council to pass an ordinance to reform property taxes.
"We're not against it. What we are saying is you must pass the property tax reform ordinance first to clean up the assessment division, which is currently still doing these overassessments before we implement a land value tax plan, which will increase the administrative burden on the assessment division, which is already not meeting its mandate," said Bernadette Atuahene.
If the legislature passes the plan, it will go before the city council for approval. If it's approved by the city council, it will be placed on the ballot for the 2024 election.
If voters give it the green light, the plan will go into effect in 2025.
