Detroit News: Half of Detroit property owners don’t pay taxes

[Cincinnati_Kid]

You have worthless property, in many cases rotted away from lack of any kind of upkeep, in terrible areas surround by more worthless property. A total liability, not an asset in any sense of the word. You seem surprised that it takes years to lower the boom or it doesn't happen at all. What's the hurry anyway?

Every home in the city of Detroit isn't worthless. There's still some lovely homes that exist. And nobody is rushing the process, I just find it ironic that if you're in the burbs, they'll forclose on you before you can bat a eye.

[Goose]

"this way it keeps both the owner and the city honest"

The city can't afford to purchase any properties and it doesn't need any more properties that it can't manage to go with the thousands of parcels its already been stuck with through tax sales, etc. Knowing this, property owners could go in and demand that the city reduce their assessments to next to nothing knowing that there's no likelihood that the city's going to purchase their property. The land speculators would love this system. It would let the Michael Kellys of the world get land for next-to-nothing at a tax sale, force the assessment down to almost nothing and be able to hold the property forever without fear of losing it at a future tax sale. A great way to destroy the city's tax base in no time at all.

how's that? if market forces exist, once the assessment is challanged to such a low point where it is actually below market value, the city would make a profit purchasing below market values... the owner doesn't want to sell the property below market value..... the only reason the city if currently "stuck" with thousands of properties they can't manage is because they are all worthless and have been essentially abandoned by the owners, partially due to the fact that these properties have been and are WAY overassessed and the amount of tax is probably more than the entire property is worth.... with a buyback system, there is no doubt the properties would be assessed property, even the mostly worthless properties.....

how is a "micheal kelly" gonna take a $1,000,000 property and force the assessement down without eventually reaching a point where it makes sense for the city to buy it at the reduced price and sell higher.... if the property is truly worth 1,000,000.

[aj3647]

There are no hairs to split. One either owns the property or they don't.

That applies to paying taxes too. Once the due date has come and gone, then either you have paid them or you have not paid them. So what's so "misleading" or "Detroit-bashing" about the headline?

Until you have paid your taxes, you have by definition NOT paid them. It's a binary yes/no condition, you have either done it or you have not. Odd that you talk about splitting hairs just one post after you split hairs on paying taxes, that we can't say that people who haven't paid their taxes haven't paid their taxes because they MIGHT pay them one day in the future...

[Novine]

"the only reason the city if currently "stuck" with thousands of properties they can't manage is because they are all worthless and have been essentially abandoned by the owners, partially due to the fact that these properties have been and are WAY overassessed and the amount of tax is probably more than the entire property is worth"

First, where does the concept of "the city has no money to buy properties" fit into your scheme? It doesn't. Second, the fact that properties have fallen into city ownership doesn't prove anything about their value. In fact, some people have been willing to buy these properties but because the city's overwhelmed with what it has, it doesn't have the capability to properly manage or dispose of these properties.

[Goose]

First, where does the concept of "the city has no money to buy properties" fit into your scheme? It doesn't. Second, the fact that properties have fallen into city ownership doesn't prove anything about their value. In fact, some people have been willing to buy these properties but because the city's overwhelmed with what it has, it doesn't have the capability to properly manage or dispose of these properties.

the point is to lower the assessments to REAL MARKET VALUES, not to have the city buying properties... the city wouldn't be buying properties if they lowered the assessments to realistic levels... owners of valuable property aren't going to risk losing their property to below market sales by forcing assessments to low.... there should at some point be a balance where the assessments are fair and the city is not buying properties at below market values.....

but I guess the current system is running smooth enough for you... city is collecting all the taxes it needs and is due....

[Novine]

"but I guess the current system is running smooth enough for you... city is collecting all the taxes it needs and is due...."

The current system is based on what's required by law, not some hare-brained scheme that would benefit speculators. Lowering assessments is only going to result in even higher tax rates.

[steve from virginia]

Detroiters don't pay property taxes. Is this a surprise?


http://www.economic-undertow.com/201...ro-government/


Meanwhile, the Detroiters are on the hook for tens billions of dollars of debt taken on to run the ossified city government, pay pensions, build football and baseball stadiums … arenas, improvements for casinos and retail ‘big-box’ stores. The reason Michigan keeps Detroit at arm’s length is because the state is as bankrupt as the city. If it does nothing, the city’s finance burdens will crush the state, if it tries to ‘fix’ the city the effort will crush the state just as well.

[Richard]

That's about as funny as selling the art or building a new bridge.

I think lowering the tax rates would cause the city to lose value when it comes to bonding,based on bonds are kinda secured because you can always raise the rate to pay the debt.

So if you are maxed out in tax increases it would be hard to increase more.

The country has always had good times and bad , we are in a bad time,it takes jobs and demand so now while the demand is low instead of educating and training the workforce to become a power again we are in a race to see who can come up with the most whacked out ideas instead of tried and true.

The sad part is people are making millions to do it , the same millions that could be spent on job creation, but we have not learned anything from the mortgage greed,we want it now and who cares about the neighbor or the rest of the country in the future and in the end we can blame it on the banks and corporate heads.

[mwilbert]

"but I guess the current system is running smooth enough for you... city is collecting all the taxes it needs and is due...."

The current system is based on what's required by law, not some hare-brained scheme that would benefit speculators. Lowering assessments is only going to result in even higher tax rates.

I don' t think it is the reason the city can't collect the taxes it is due, and I'm not in favor of hare-brained schemes, but I cannot believe that the current system of assessment is working properly. The assessments for similar homes in similar locations vary wildly, and I often see valuations that are ridiculously high. The idea of proper assessments isn't to keep property tax rates low, it is to produce equitable valuations, and I don't see that the current system is doing anything of the kind.