Property Tax Changes May Benefit Morningsiders
Proposed changes to Detroit’s property tax system have attracted much attention over the past several weeks. Morningside residents who attended our September general meeting received a highly informative presentation on this topic from Kevin Bain of the City’s Office of the Chief Financial Officer. As Mr. Bain noted, the proposal from Mayor Duggan centers around two key points:
taxes on homes would be reduced by an average of 17%
taxes on land would be increased by 50%
If implemented, the so-called Land Value Tax (LVT) will result in savings for almost all homeowners and landlords in Morningside. Yet many steps remain before changes could go into effect in 2025. First, the State of Michigan Legislature needs to pass legislation allowing the City of Detroit to change its taxation system. Assuming they do so, City Council will need to authorize a ballot question that enables Detroiters to vote Yes or No on a Land Value Tax.
As of October 4, the MI House of Representatives is still considering and tweaking the LVT legislation. It will then need approval from the State Senate and Governor Whitmer.
According to Kevin Bain, the Mayor’s goal is to have City Council approve in November placement of the question on the February 2024 ballot for the voters’ decision. Rumors in recent days suggest, however, that this approval timeline may be delayed, pushing a public vote to November of 2024.
A few Morningside homeowners currently receive a NEZ property tax exemption. Those homeowners would not see a reduction in taxes. The LVT would effectively give all property owners the same tax break now enjoyed by a small minority. My own property taxes will decrease by about $250, if my math is correct.
Questions remain about whether this new system would result in lower overall tax revenues for the City. Many public information sessions, most of them accessible by Zoom will be held over the next several weeks. Attending our monthly 2nd Tuesday Morningside community meetings is an excellent way to keep up with changes and ask questions.
