Faycurry Quoted on Potential Consequences of Detroit Mayor's Proposed Property Tax Legislation

Law360
Partner Joanne Faycurry discussed the potential consequences of Detroit Mayor Mike Duggan’s proposed legislation that would raise tax rates on certain types of properties to reduce blighted properties and promote development.

Joanne said that while the plan’s goal is “laudable,” lawmakers would have to deal with unintended consequences. If the goal is it to eliminate the tax advantage the current property tax system seemingly provides blighted properties and under or un-developed properties, she explained that lawmakers may have to create exemptions for properties such as parking lots, privately owned parks and urban farms, and certain types of warehouse properties that could be subject to tax increases under the plan.

"There's going to be some policy considerations," Joanne said. "The devil will be in the details."

She noted that any drafted legislation would have to comply with the Michigan Constitution's uniformity requirements, and added that Pennsylvania employs a land value tax system that complies with the uniformity clause in that state's constitution, which could serve as an example for Michigan.

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