This article addresses Detroit lawmakers who are contemplating a shift to a land value tax, aiming to alleviate homeowners’ tax burdens and spur development on vacant properties. The proposed tax would be based on land value rather than property improvements, potentially encouraging owners of vacant lots to sell or develop their land. According to the Wall Street Journal, such a change could reduce property taxes for 95% of homeowners while targeting out-of-state investors who hold onto vacant land. Critics argue that the current property tax system in Detroit disproportionately burdens homeowners, contributing to overtaxation issues that have led to significant foreclosure rates. The move mirrors Pittsburgh’s experience with a land value tax in 1979, which correlated with increased construction activity but did not eliminate neighborhood inequalities.

https://nextcity.org/urbanist-news/housing-in-brief-detroit-may-initiate-a-land-value-tax