Detroit has the Highest Property Taxes of any Major City

Daniel Greenfield, a Shillman Journalism Fellow at the Freedom Center, is a New York writer focusing on radical Islam. He is completing a book on the international challenges America faces in the 21st century.


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There’s a twist to this story and it’s the predictable one that you get from liberalism. Detroit has the highest property taxes of any major city… and hardly anyone pays them.

A study by the Lincoln Institute of Land Policy looked at effective property tax rates in the 50 largest U.S. cities in 2011. Detroit had the highest property tax rates of all 50 cities on homes, apartment buildings, commercial buildings, and industrial buildings.

The chart shows the effective tax rates in Detroit vs. the average of the largest 50 cities. The Detroit tax rates are generally twice as high as the U.S. averages.

Detroit taxes have to be twice as high… to compensate for the fact that half of Detroit property owners don’t pay them.

47  percent of the city’s taxable parcels are delinquent on their 2011 bills. Some  $246.5 million in taxes and fees went uncollected, about half of which was due  Detroit and the rest to other entities, including Wayne County, Detroit Public  Schools and the library.

Delinquency is so pervasive that 77 blocks had only one owner who paid taxes  last year.

Detroit relies on a shrinking sliver of businesses and neighborhoods  to pay the bulk of the bills. The three casinos, General Motors Corp., DTE  Energy, Chrysler Group LLC and Marathon Petroleum Corp. paid 19 percent of  collected property taxes. Five city neighborhoods, most of them downtown and  along the river, paid 15 percent of the city’s taxes and represent only 2  percent of the city’s total parcels. In all, only 41 percent of the city’s  parcels produced tax revenues last year because of delinquencies and a large  number of tax-exempt land.

Welcome to the liberal economy.

 

  • nomoretraitors

    That’s ok. No one lives there anyway

    • Gee

      But the city has to provide services for those 77 neighborhoods with one taxpayer. That gets expensive

  • John Davidson

    Liberals may help you buy a house, but the reason may not be so obvious.

  • Larry Larkin

    Why would you pay a tax that’s worth more than the property, which is how things are in a lot of Detroit.

  • NAHALKIDES

    This is the Left’s M.O. – squeeze a greater and greater amount of money from fewer and fewer taxpayers (a/k/a “victims”) to support their bloated Welfare State until everything collapses.

  • JacksonPearson

    LMAO…and where are the people that are supposed to be living in this broken down ghost town? Oh forgot, the tax happy liberals ran them out.

  • deh3

    Property taxes would decrease if Michigan were appropriately represented in the federal legislature, and if it became more profitable for builders to build upward rather than outward through changes to zoning, impact fees, property taxes (based on the value of land alone rather than land and building and apartment property tax rate decreased to the residential rate) and eliminating land transfer taxes.

  • Val A Lindsay II

    You people have it wrong. Politicians want to squeeze you for crazy tax rates, not liberals. If you choose to be branded a Liberal or a Conservative, you’ve bought into Beltway politics, suckers!