The Lincoln Institute released its annual report on property taxes across the 50 states and guess what? Based on median home sale prices, Detroit has some of the highest property tax rates in the country!
This year, the report also analyzes why the tax rate is high compared to others. Detroit’s is high because the property values are so low.
"The property tax is a critical source of revenue for local government services, from education to public safety," said Joan Youngman, chair of the Lincoln Institute’s Department of Valuation and Taxation. "This report provides a snapshot of property taxation across cities, one step toward a fuller picture of how communities meet their responsibility to serve their citizens."
While many of the top cities in property taxes have high taxes because of their reliance on them (no sales tax, low income tax), cities like Detroit rely on property taxes just to cover basic services.
Not only are we high for tax rates for homes, but we’re #1 for commercial properties.
This all adds in to a greater discussion we started a few weeks ago into the real cost of living in the city. While many think the low property values mean a low cost of living, all of the other costs (insurance, transportation) start to add up.
- Lincoln Institute Releases New Analysis of Property Taxes in 50 States [RealEstateRama]
- 50-State Property Tax Comparison Study [Lincoln Institute]
- The Price of Living in Detroit: An Open Thread [Curbed Detroit]