Report: Detroit's Property Tax System in Need of Major Overhaul

Detroit's comeback has been well documented, as has its efforts to remove blight and demolish vacant properties. A new report sheds light on another of the city's deepest challenges: how to reform property taxes to achieve fiscal certainty.

1 minute read

November 11, 2015, 12:00 PM PST

By James Brasuell @CasualBrasuell


"Detroit is still hindered in its recovery by structural flaws in its property tax system," according to a new report published by the Lincoln Institute of Land Policy.

A post on the Lincoln Institute's blog introduces the study, which details the multiple stresses on the city's fiscal system associated with property tax system, including high property tax rates, delinquencies, inaccurate assessments, overuse of tax breaks, and limitations imposed by the Michigan constitution and state statutes.

The report, titled Detroit and the Property Tax: Strategies to Improve Equity and Enhance Revenue and written by Gary Sands, Wayne State University professor emeritus of urban planning, also provides five suggestions for reforming Detroit's property tax system, which are informative for other post-industrial cities struggling to achieve fiscal balance. The reports suggested reforms:

  • Continue to improve assessments
  • Improve the targeting of tax abatements
  • Implement a land-based tax
  • Eliminate the state's taxable-value cap
  • Reduce statutory tax rates

Christine MacDonald picked up the news of the report, providing coverage for The Detroit News. The article focuses mostly on the imbalance of tax breaks for businesses and the highest tax rates of any major city in the country for individual property owners.

Tuesday, November 10, 2015 in At Lincoln House

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 18, 2025 - Diana Ionescu

Two people walking away from camera through pedestrian plaza in street in Richmond, Virginia with purple and white city bus moving in background.

Vehicle-related Deaths Drop 29% in Richmond, VA

The seventh year of the city's Vision Zero strategy also cut the number of people killed in alcohol-related crashes by half.

June 17, 2025 - WRIC

Two small wooden one-story homes in Florida with floodwaters at their doors.

As Trump Phases Out FEMA, Is It Time to Flee the Floodplains?

With less federal funding available for disaster relief efforts, the need to relocate at-risk communities is more urgent than ever.

June 16, 2025 - Governing

Bird's eye view of busy urban intersection with bus lanes, traffic, and pedestrians.

How Understanding Near-Misses Can Improve Road Safety

Most road safety efforts are based on data about crashes that have already occurred. But important information can be gleaned from incidents when something almost went wrong, but didn’t.

6 seconds ago - Cities Today

Cincinnati publiv bus with orange front.

Cincinnati School District Shifts Students to Public Transit to Cut Costs

Over 10,000 Cincinnati Public Schools students already use public buses for school transportation each year.

1 hour ago - Cincinnati Enquirer

Close-up on white sign with green "Reserved Parking" letters and blue accessibility symbol.

Raleigh Pilots App-Based Feedback Program for Accessible Parking

The city is using the program to collect real-time information about accessibility issues and correct them quickly.

2 hours ago - GovTech