(Source: MIRS.news, Published 08/31/2023) (DETROIT) -- Detroit Mayor Mike Duggan urged the Legislature Thursday to pass by the end of October his property tax reform plan so the Detroit City Council has time to put it on the 2024 presidential primary ballot.
Duggan said he's trying to accelerate his "land tax" proposal so Detroit homeowners can experience a tax cut averaging 17% by 2025. Also, the quicker the new tax scheme is on the books, the sooner land speculators need to make decisions on vacant land they're not doing anything with.
Rep. Stephanie Young (D-Detroit) said she hopes to sponsor next week legislation that will ensure no Detroit homeowner sees a property tax increase from the change, that includes side-lot owners and community gardens.
While similar proposals have kicked around Lansing in prior sessions, Young said with the Democratic trifecta in Lansing in charge, the time for the reform is now.
"Why would we wait? I feel like Detroiters have waited long enough to finally see some type of tax relief like what we're proposing today," Young said.
Under the proposal Duggan laid out on Mackinac Island during the Detroit Regional Chamber conference, Detroit's property tax mills would be cut 14 mills from 67 mills to 53 mills, while the tax on land would more than double.
The winners under the plan are homeowners, many of whom are looking at annual tax cuts in the $150 to $200 range. The losers would be speculators sitting on large amounts of property in the hopes of getting the right deal that will make them a fortune.
"Those who have downtown parking lots are going to pay more in the short run, but if they develop the parking lots and put buildings on them, they'll do better in the long run," Duggan said.
Detroit officials claim the plan is revenue neutral.
Since the plan includes a property tax increase, it must be approved by Detroit voters, some of whom showed up at Thursday's press conference to share a message that the reform isn't transformational enough.
A group called the Coalition for Property Tax Justice says the city of Detroit has been unconstitutionally overtaxing Detroit residents for years and that homeowners should be reimbursed. Detroit activist Bernadette Atuahene said her group hasn't taken a position on Duggan's plan but did urge the City to stop "illegally assessing" lower-value homes in alleged violation of the state constitution.
Duggan responded that the city assessor, the state tax commission, and the courts have all disagreed with Athuahene's interpretation, but that she was free to continue advocating her position.
Young and Duggan were joined at Thursday's press conference by Rep. Alabas A. Farhat (D-Dearborn) and Rep. Karen Whitsett (D-Detroit), both supporters of the legislation. Three city councilmembers -- former Rep. Fred Durhal III, former Sen. Coleman Young II, and Gabriela Santiago-Romero -- were present, as well, to show their support. While Speaker Joe Tate (D-Detroit) was not present, Duggan said he's “here in spirit.” MIRS has learned this proposal is the Speaker's top agenda item going into the fall.
