If you tax blight, will you get less of it?

  • CoffeeAddict@kbin.socialOP
    link
    fedilink
    arrow-up
    3
    ·
    1 year ago

    But Bernadette Atuahene, one of the authors of that study, suggests that high rates were not the only problem. What mattered more was that after the great financial crisis, Detroit’s assessor systematically overvalued the homes of the poorest residents. When people could not pay, Wayne County, which includes the city, added interest at 18%. Homes ended up auctioned, with any excess over the tax owed banked by the county. Ms Atuahene worries that the proposed new tax does nothing to fix this problem—and if residential land ends up overvalued, may exacerbate it. “We currently have an assessment division that’s not doing its job,” she says.

    Getting assessments right is one of the long-standing challenges of land-value taxes, and explains why they are so rare. Still, if the city can do that well, there will be real gains. Gabriel McNeil, a 61-year-old former chef who now lives on disability benefits, says that even a small tax cut would help him a lot. Having bought his home for just $8,000 in 2013, he struggles with tax payments of thousands of dollars each year. “The property tax is not designed for lower-income people at all,” he says. “It’s not easy to keep up.” For some, any cut is better than nothing.