
Michigan cities raised taxes an average of 13.9% from 2004 to 2020.
- The Citizens Research Council of Michigan analyzed the data in a recent report.
By the numbers: Tax rates actually decreased in 29% of the state's 281 cities over the 16-year period.
- But of the cities that did raise taxes, nearly half hiked rates by 20% or more.
- Urban cities were more likely than rural ones to increase taxes in that period.
The big picture: Local governments that are able to attract new residents and development grow their tax base naturally, while those that don't receive limited revenues and often need to raise taxes.
- That's problematic because cities can't indefinitely raise rates — there's state-level limits. Plus, high property taxes make it harder to afford a home and results in people leaving.
Zoom in: Detroit has a particularly high tax burden, a huge obstacle to economic growth.
- Its rates haven't risen, though, because the city is pretty maxed out.

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