City officials in Detroit are considering a proposal to adopt a land-value tax, a measure that would significantly raise taxes on vacant land while giving building owners, including homeowners, a tax break.

Detroit currently calculates property taxes as most US municipalities do it: by making assessments of the value of a property's land and the buildings on it, charging a fixed percentage each year.

According to a report in the Wall Street Journal, city officials in Detroit are pushing to switch to a two-tiered system that assesses a land-value tax (LVT)—based solely on the land value of the property—and a separate tax assessment for buildings and homes.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.