Proposed Land Value Tax Plan in Detroit

Detroit Mayor Mike Duggan proposes hiking property taxes for vacant land and buildings while lowering the rate for occupied homes and businesses in a split tax plan he contends will resolve many of Detroit's blight and high property tax woes.

2 minute read

June 2, 2023, 6:00 AM PDT

By DA Hedges


On Wednesday, Detroit Mayor Mike Duggan proposed hiking the city's property taxes for vacant land and buildings while lowering the rate for occupied homes and businesses in a split tax plan he contends will resolve many of Detroit's blight and high property tax woes.

The proposal, dubbed the Land Value Tax Plan, would increase taxes on land while reducing taxes on homes and structures by an expected 30 percent, or roughly $38 million total. This would apply to every neighborhood in Michigan's largest city, require, no application, and never expire.

If approved by the Michigan Legislature and later by Detroit voters, Duggan said, the plan would provide relief to homeowners who have been struggling under the burden of high taxes, encourage further neighborhood growth and hold land speculators accountable. Duggan laid out his plan Wednesday during an annual address at the Detroit Regional Chamber's Mackinac Policy Conference.

Currently, private owners own roughly 30,000 neglected lots that Duggan on Wednesday described as “cheap lottery tickets” that bet on an increase in land value with no actual investment in the property. The city is forced to cut grass in the lots and remove garbage to spare surrounding neighbors while the property owners pay about $25-30 a year in taxes.

“This is what is driving me nuts,” Duggan said. “In Detroit, blight is rewarded and building is punished.”

Under Duggan's plan, the average homeowner will see a $250 annual tax reduction, according to the mayor's office.

Owners of active businesses and land that is in productive use will also see their tax bills go down, depending on the taxable value of their assets. Currently, vacant residential lots in the city are taxed at an average of $25 annually, according to the mayor's office.

The program, which would be phased in over three years starting in 2025, would on average increase the millage rate on vacant land from 86 to 124 mills and lower the millage rate on a home from 86 to 60 mills, Duggan told The Detroit News.

Wednesday, May 31, 2023 in The Detroit News

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

Get top-rated, practical training

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

People sitting and walking in plaza in front of historic Benton County Courthouse in Bentonville, Arkansas.

Placekeeping: Setting a New Precedent for City Planners

How a preservation-based approach to redevelopment and urban design can prevent displacement and honor legacy communities.

March 28, 2025 - Emily McCoy

Green and silver Max BRT bus at station in Fort Collins, Colorado.

Colorado Lawmakers Move to Protect BRT Funding

In the face of potential federal funding cuts, CDOT leaders reasserted their commitment to planned bus rapid transit projects.

45 minutes ago - Colorado Public Radio

Low view of separated bike lanes in middle of Pennsylvania Avenue with U.S. Capitol dome visible at end of street at night.

Safe Streets Funding in Jeopardy

The Trump administration is specifically targeting bike infrastructure and other road safety projects in its funding cuts.

1 hour ago - Grist

Man in green shirt painting yellow and black "Housing is a human right" mural on fence.

Six Reasons Why Housing Is a Human Right

Is housing a human right? A law professor shares six reasons why it should be, from its role in protecting other rights to global recognition and U.S. legal traditions. As public support grows, could housing be the next right written into law?

2 hours ago - Shelterforce Magazine