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    • Introducing the partnership with the Race and Justice reporting Initiative
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    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

    Basilica of the National Sanctuary Of Our Lady Of Charity of Cobre

    Basilica of the National Sanctuary Of Our Lady Of Charity of Cobre

    Basilica of Saint Mary Major, Vatican City

    Basilica of Saint Mary Major, Vatican City

    James Craig, un ex jefe de policía de Detroit, anuncia su campaña para alcalde a los reporteros de Executive Cuts & More. Foto: Annalise Frank/Axios

    Un punto clave: Entrevista con James Craig

    Preparing for the Cinco de Mayo Parade in 2025

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    Photo of Cesar Chavez Academy’s High School Robotics team, the AzTech Eagles, after their successful performance at the FIRST State Robotics Competition. Photo taken by the AzTech Eagles robotics team.

    Southwest Detroit Robotics Teams Earn Recognition at District, State and World Competitions

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    Barbaro Garbay at the Tigers’ 1984 World Champions Reunion in 2024 Photo courtesy of the Detroit Tigers

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  • Community
    Carmen Elena Luna, project manager for Bird Flu Outreach at Strangers No Longer, explains the importance of educating dairy workers in rural Michigan

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    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

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    EL CENTRAL Welcomes New Face: Michael Gutierrez

    A painted puzzle piece artwork is displayed as Ballet Folclórico of Wayne State University dancers perform at Roosevelt Park during the ‘Pieces of Detroit’ event in Detroit, Michigan, on April 27, 2025. The installation and performances celebrated the cultural and historical ties across Southwest Detroit.

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    Members of Ballet Folklórico of Wayne State University rehearse calabaceados, a high-energy dance style originating from Baja California, at the Student Center in Detroit, Michigan, on April 16, 2025. The group is preparing for their “¡Viva el Norte!” presentation, which will feature traditional dances from northern Mexico

    Viva El Norte! WSU Ballet Folklorico Celebrates Northern Mexico

  • Featured
    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

    Caesar Chavez Academy’s Robotics Team Represents Southwest Detroit at World Robotics Championship

    El Arzobispo Edward J. Weisenburger dirige las oraciones durante una Misa en memoria del papa Francisco el 21 de abril en la Cathedral of the Most Blessed Sacrament en Detroit. El papa Francisco, quien ha liderado la Iglesia católica desde 2013, murió la madrugada del lunes, el día después del Domingo de Pascua. (Foto de Valaurian Waller | Detroit Catholic)

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    Photo of Cesar Chavez Academy’s High School Robotics team, the AzTech Eagles, after their successful performance at the FIRST State Robotics Competition. Photo taken by the AzTech Eagles robotics team.

    Southwest Detroit Robotics Teams Earn Recognition at District, State and World Competitions

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    La Basilica of Ste. Anne, un emblemático templo de 139 añosserá completamente restaurada gracias a una alianza transformadora con The Catholic Initiative. The 139-year-old Basilica of Ste. Anne will undergo a $30 million “complete rehabilitation” thanks to a “transforma- tive partnership” with The Catholic Initiative. (Foto de / Photo by James Silvestri | Special to Detroit Catholic)

    ‘Innovative partnership’ will secure future of Ste. Anne, preserve basilica for generations

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    Detroit’s new archbishop a caring leader who listens, coworkers and friends say

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    Members of Ballet Folklórico of Wayne State University rehearse calabaceados, a high-energy dance style originating from Baja California, at the Student Center in Detroit, Michigan, on April 16, 2025. The group is preparing for their “¡Viva el Norte!” presentation, which will feature traditional dances from northern Mexico

    Viva El Norte! WSU Ballet Folklorico Celebrates Northern Mexico

    ina Tse during the Commemorative Quilt Project at Neighborhood Art School in Detroit, Michigan, on April 19, 2025. Held ahead of Detroit Fashion Revolution Week, the event honors garment workers lost in the 2013 Rana Plaza collapse in Bangladesh

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Mayor Duggan Introduces Land Value Tax Plan to Cut Taxes for Homeowners

The new plan would hold land speculators accountable and spur development

EL CENTRAL by EL CENTRAL
June 28, 2023
in Community
Reading Time: 3 mins read
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MACKINAC ISLAND – Mich. – Mayor Mike Duggan unveiled a sweeping new proposal that would transform the city’s broken property tax system, which currently rewards owners of vacant and blighted properties while placing a heavy tax burden on homeowners. The Mayor’s Land Value Tax Plan would bring much-needed tax relief to homeowners and most businesses, while making owners of blighted and vacant properties pay their fair share.

Detroit’s current tax structure is the biggest obstacle in the city’s ongoing transition from Blight to Beauty. Under the current system, vacant land and blighted buildings are taxed at a much lower rate than single-family homes and other structures. “We have a property tax system that punishes anyone that builds in Detroit and strongly rewards anyone who owns vacant land and completely neglects it,” Detroit Mayor Mike Duggan said. “Our land has value and it’s time we tax it that way and stop incentivizing blight.”

The system is so broken that one speculator in Detroit owns 261 parcels of vacant land totaling 22 acres across the entire city and only pays $6,542 in taxes while a single Detroit homeowner with a $200,000 house who puts time and energy into maintaining their property pays $6,800 in taxes.

Under the Mayor’s proposed Land Value Tax Plan, cities like Detroit would have the ability to increase the tax millage on land and reduce the tax millage on structures like homes and buildings. That means property taxes on land will go up while the taxes on structures like homes and buildings would go down. It applies to every neighborhood, requires no application, and does not ever expire.

Detroit’s current millage rate of 86 on all properties is far higher than surrounding cities. The Land Value Tax Plan proposes to replace 20 mills for city operations and 6 mills of the State Education Tax with the new Land Value Tax. The increase in tax rates for land speculators and others who are not using Detroit land efficiently would make up the revenue needed to keep city operations within a balanced budget. Reducing the effective tax rate for residents and business owners will mean Detroit’s tax rate is comparable to surrounding cities and bring more growth and investment.

Homeowners

Homeowners are the biggest winners under the Land Value Tax Plan. Ninety-seven percent of Detroit homeowners would see a reduction in their property taxes while the remaining 3% would see no change at all. The Land Value Tax Plan provides more relief than the NEZ Homestead exemption. The median homeowner will save 27% on their tax bills. The average $50,000 home in Detroit will see a $450 tax cut, while a $100,000 home will see a tax cut of $900.

Small Businesses

Under the Mayor’s Land Value Tax Plan, 70% of small businesses can expect to see a reduction in their property taxes. A typical retail business will see 5% in savings, while others may see an increase based on the size of their parking lot and the location of their business. While the Land Value Tax Plan will increase taxes on vacant, unproductive land, the City of Detroit is working on a plan to protect existing businesses and developments through a tax credit system. Properties that meet a certain development threshold will be capped at a maximum increase, and businesses that meet zoning requirements for parking will be protected from increases on those parking spaces.

New and Expanded Developments

The land value tax plan will also make building, rehabbing, and expanding multifamily housing more affordable. Multifamily housing will benefit from a median savings of 20%. New housing developments will be easier to finance and less expensive to operate. The tax savings will help spur more high-quality, affordable housing throughout Detroit.

Next Steps

Mayor Duggan will begin working with stakeholders as the community leaders, housing advocates and other stakeholders as the Land Value Tax Plan heads to the Michigan Legislature for approval. Once approved by the legislature, municipalities like Detroit would have the option of enacting it with the approval of residents. It is anticipated that the Land Value Tax Plan would be on the Detroit ballot next February. If approved, the Land Value Tax Plan would be phased in over three years beginning in 2025.

To learn more about the plan, visit https://detroitmi.gov/departments/office-chief-financial-officer/land-value-tax-plan.

Tags: Annual Mackinac Policy ConferenceDetroitHomeownersLegislationTaxes
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