43 min

Detroit’s Split-Rate Tax Proposal—Concerns with Unintended Effects #FactsMatter, the Citizens Research Council of Michigan podcast

    • News

While property tax relief for residents and businesses is needed, the split-rate tax proposal may fail to achieve its objective of added economic vibrancy. In its function as a penalty to land speculation, it may have the unintended effect that it worsens the city’s issue with abandoned and vacant land.

- Currently, under consideration by the state Legislature is a bill that would permit Detroit to levy its version of a land value tax.

- The so-called split-rate tax proposal would split the levy between land and built structures, with a higher tax on land to incentivize development and disincentivize land speculation.

- The added penalty to land speculation could worsen the city’s problems with vacant land if speculators decide to abandon property rather than pay more in taxes or develop the land.

Guest Host Malachi Barrett, reporter with Bridge Detroit, chats with James Tatum, Detroit bureau director.

While property tax relief for residents and businesses is needed, the split-rate tax proposal may fail to achieve its objective of added economic vibrancy. In its function as a penalty to land speculation, it may have the unintended effect that it worsens the city’s issue with abandoned and vacant land.

- Currently, under consideration by the state Legislature is a bill that would permit Detroit to levy its version of a land value tax.

- The so-called split-rate tax proposal would split the levy between land and built structures, with a higher tax on land to incentivize development and disincentivize land speculation.

- The added penalty to land speculation could worsen the city’s problems with vacant land if speculators decide to abandon property rather than pay more in taxes or develop the land.

Guest Host Malachi Barrett, reporter with Bridge Detroit, chats with James Tatum, Detroit bureau director.

43 min

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