Lawmakers debate Detroit property tax plan
Mayor Mike Duggan's plan to slash Detroit homeowners' taxes is off to a rocky start in Lansing.
Why it matters: Duggan's timeline to implement the plan by 2025 is predicated on state lawmakers' approval by mid-November.
Driving the news: Without sufficient Democratic support, the state House pulled the plan from its voting agenda last week, per the Detroit News.
- A vote in the House is expected as soon as Wednesday.
Catch up fast: Duggan announced the land value tax plan as a solution to two of the city's persistent problems — property tax rates among the nation's highest and widespread, decades-long land speculation.
- Legislative approval this month would allow City Council to take up the measure in November.
- With council's authorization, Detroiters could vote on the plan as part of February's presidential primary.
How it works: The city's operating millage — applied to owners of homes, apartments, retail stores, office buildings and land — would be cut from 20 mills to 6 mills under the plan.
- Meanwhile, taxes would more than double on parking lots, scrapyards, abandoned buildings and properties with vacant land.
- The city says the average homeowner would see a 17% property tax cut under the plan.
Between the lines: Some City Council members have lobbied state lawmakers for more time to debate the plan's merits, the Detroit News reports.
- "I believe a good portion of us don't feel comfortable putting this on the ballot for February," council member Gabriela Santiago-Romero told the News.
- Putting the proposal before voters the following November would allow more time for healthy debate.
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