Detroiters put city's tax plan proposal to the test with new estimator
DETROIT (FOX 2) - Detroit put their Land Value Tax Plan estimator to the test Wednesday when residents tried out the new online tool, which shows them what their property taxes would be under the city's proposal.
The audacious plan swaps the way the city taxes its residents by reducing a homeowner's property taxes while increasing the tax on land. The city says 97% of all homeowners would see savings. Meanwhile, parking lots and scrapyards would see a 50% increase in their taxes. Taxes on abandoned buildings would increase by 100%.
The journey toward the proposal becoming law is still a ways away. But at the Adams Butzel Recreation Center in Detroit, homeowners had the opportunity to see what they could gain with the proposal.
"The main goal here is to reduce the tax burden on residents," said Nikhil Patel, deputy CFO and treasurer of Detroit. "It's been broken for a long time and it's probably a good time to start changing that."
Patel said it's not just about helping homeowners, but putting pressure on land speculators as well.
"As you see around, when we have so much vacant land that's not being activated, something needs to be done about it. And so what this will do is increase the cost of just holding onto the land and again, 97% of residential homeowners will see a decrease in their overall tax bill," said Patel.
As Carolyn Johnson discovered, she would be among those that would save money.
"Any savings is great because I think we've been overtaxed as it is, so anytime we can save some money, we're going to be right there," she said.
Calculator estimates savings that Detroit homeowners would see on property taxes under Duggan proposal
The average Detroit homeowner will see their property taxes reduced by 17%, the city said.
As it tries pushing the plan through the legislature, Detroit has also sent representatives to rec centers and district meetings with the goal of updating the public on how it works. They can use their phone or laptop to find out, all it takes is plugging one's address into the estimator tool that can be found here.
"Generally, it's been very positive. People are able to enter their address on this website and see that they'll most often get a savings on their tax bill which has been really exciting for people to see," said Christina Shaw, a financial analyst.
If the tax plan becomes law, it will have been approved by the legislature then voted on by the city council to be placed on the 2024 ballot. If residents approve the proposal, only then would the new law take effect.