Detroit Land Value Tax Proposal (2023–24)
Detroit's mayor proposed a split-rate land value tax to cut homeowner taxes and penalize speculators holding vacant land and parking lots — a prominent modern US campaign.
Overview
Beginning in 2023, Detroit Mayor Mike Duggan championed a "Land Value Tax Plan" — a split-rate reform that would sharply raise the tax rate on land while cutting the rate on buildings (structures). It is the most prominent recent attempt to bring land value taxation to a major American city.
The Rationale
Detroit suffers from extensive vacant land, abandoned lots, and speculative holding — much of it owned by investors awaiting appreciation. The plan aimed to cut property taxes for most homeowners while raising the burden on owners of vacant lots, surface parking, and blighted land, directly targeting speculative vacancy. Proponents argued it would reward building and use while penalising idle land-banking.
Status
The proposal required Michigan state legislative authorisation to let Detroit split its tax rate, and faced legislative hurdles and debate over implementation and assessment. Regardless of its ultimate fate, it put land value taxation onto the agenda of a major US city and the national press.
See Also
Sources
- City of Detroit, Mayor's "Land Value Tax Plan" (2023–24) and Michigan legislative debate; contemporary news coverage.