I don't see why that is hard to believe. Property values are very low. City tax rates haven't gone up. You have to remember that the the properties that aren't going to pay their taxes aren't the valuable ones, but they are the ones that are going to owe almost all the taxes. You could probably have the least-valuable 60% of the city tax-delinquent and still get an 85% collection rate, because the least-valuable 60% is probably less than 15% of assessed value.I just find it very hard to believe that Detroit has even an 85% property tax collection rate, when property taxes are now only making up 14% of the General Fund.
Now in reality, some higher-end properties are surely tax-delinquent because of the bad market and economy, but neither are the bottom 60% all delinquent. That said, if it was 87% in 2008, it is surely lower now. So maybe it is less than 85%, but probably not dramatically.
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