University District Special Tax Assessment

[Henry Whalley]

Deadline Detroit | On Detroit's west side, University District homeowners will pay higher tax for extra services
Does this happen in other cities?

[Richard]

Yes it is in various forms and people buying into the community need to be aware of how it is set up,if it benefits the whole community it is tax deductible,if it is maintenance related and only benefits part of the community it is not tax deductible.

Have to be careful as to what is actually called and how it is set up,some go as far as becoming quasi breakaway districts or neighborhoods with the ability to raise funds by selling bonds etc.

While some are basically HOAs.

This thread is connected to the other thread you posted as it shows cause and effect and how it is spiraling out of control.

They are already paying high property tax rates,now there will be a special assessment tax on top of that to pay for services that they are already taxed on.

All of the current and most of the previous projects are all using tax capture tools,so instead of new development lowering the tax burden for current residents,it is actually increasing it and now they are having to increase the tax burden even more by implementing the special districts in order to replace the taxes lost from new development.

Not so good now but great 20-30 years in the future,at least those generations will appreciate it.

[Danny]

The University District used to have community policing.

[Danny]

Yes it is in various forms and people buying into the community need to be aware of how it is set up,if it benefits the whole community it is tax deductible,if it is maintenance related and only benefits part of the community it is not tax deductible.

Have to be careful as to what is actually called and how it is set up,some go as far as becoming quasi breakaway districts or neighborhoods with the ability to raise funds by selling bonds etc.

While some are basically HOAs.

This thread is connected to the other thread you posted as it shows cause and effect and how it is spiraling out of control.

They are already paying high property tax rates,now there will be a special assessment tax on top of that to pay for services that they are already taxed on.

All of the current and most of the previous projects are all using tax capture tools, so instead of new development lowering the tax burden for current residents, it is actually increasing it and now they are having to increase the tax burden even more by implementing the special districts in order to replace the taxes lost from new development.

Not so good now but great 20-30 years in the future, at least those generations will appreciate it.

It's happening right now in Buckhead, Atlanta. GA. The high-end community of nouveau riche high scrapers, retail and mega mansions are seeing a lot of homeless and hustlers from Mechanicsville folks sleeping on their doorsteps. So, the people will vote on November of 2022 to see secede from Atlanta and become its own suburb.

[Richard]

Yea remember during the bankruptcy how much support reducing the foot print of the City Of Detroit in order to rein in costs because there was so much land,received?

So let’s run this scenario,

Neighborhoods like EEV - creates a district within itself with the ability to sell bonds and becomes its own entity within the city,you now have the city of EEV - just as an example

What happens then if it catches on and a few more decide to do the same thing,as those who can afford it the least are forced into a smaller foot print of the city creating a poverty zone of sorts.

For lack of a better term it is micro versions of white flight as a concept but instead of fleeing to the suburbs they are establishing independent boundaries/suburbs within the city itself.

I think it is dangerous but I understand why they want to do it,I think if they are going to get approval to do it,it needs to be in a extremely limited scope.

I still say it is quicker to train and employ Detroits largest asset,the untapped labor force that is living in poverty.If they can be brought back into the system,it will lower the tax burden and there will be no need for more of these social experiments that history has taught us who it impacts the most,these districts are born out of desperation as a solution to a problem,but it is not addressing the problem city wide,just micro managing it and corralling the lower incomes into a tighter space,history also shows us what happens when we do that also.

Suburbs are basically a Ponzi scheme,without growth they become stagnant,if you create independent micro suburbs within the city you will end up with only the rich or poor,no inbetween,because there will be no room for growth only increases in cost to live in those micro suburbs.

It is not actually addressing the elephant in the room,that 45% plus that are living in the city in poverty or close to it.

[Richard]

The University District used to have community policing.

I kinda think that is good if it mimics the police of yesteryear,where long term police officers ending up knowing most of the residents from birth.

There is a massive uptick with private police force though,common in other violent as a rule countries,but it is gaining traction in this country quick,if you have a wealthy community you just let the regular police deal with the undesirables while your police force keeps them out of your space.