Detroit studies plan to reduce the fiscal ‘penalty’ of residency
By Malachi Barrett
Detroit is looking at policy changes to ease the “unsustainable” tax burden it places on residents and to deter land speculators from snapping up and sitting on vacant property. Varying tax rates – higher for open land and lower for structures and improvements – could reduce tax bills for homeowners and accelerate the development of long-vacant properties, according to a study cited by the city as it investigates how to bring down residential property taxes. The “split-rate” system has attracted interest from city leaders for years, dating back to when Detroit filed for bankruptcy in 2013, and is getting a renewed push. Matthew Roling, an adjunct professor at Wayne State University with past experience at the Detroit Economic Growth Corp. and Rock Ventures, said he’s encouraged city officials are looking at innovative ways to prevent tax delinquency and foreclosure that is “burning out” neighborhoods. “I don’t know if it’s going to be a silver bullet,” Roling said. “The devil is in the details. There is a huge problem here and it’s that the property tax regime in the city of Detroit has failed the city. Let’s start with that.”