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Detroit has the Highest Property Taxes of any Major City

Posted By Daniel Greenfield On September 20, 2013 @ 9:46 am In The Point | 7 Comments

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.

 


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