Duggan's property tax proposal faces pushback from some Detroit City Council members

Mayor Mike Duggan's plan to overhaul the city's property tax system is facing pushback from several members of Detroit City Council, including a councilwoman who claimed she "torpedoed" a potential vote on the proposed legislation in Lansing late last week.

Four members of Detroit's nine-member City Council lobbied state lawmakers last week to oppose a vote on legislation required to make Duggan’s land value tax plan a reality. Those members included Councilwomen Latisha Johnson, Gabriela Santiago-Romero, Mary Waters and Angela Whitfield-Calloway.

Duggan has proposed doubling the city's tax on vacant land and unoccupied structures, from 85 mills to 189 mills, while slashing the city's operating millage by 70%, or by 14 mills, from 20 mills to 6 mills.

Santiago-Romero said she is more opposed to the speed at which Duggan wants the measure to be approved than the actual idea. Duggan has sought swift passage of the legislation so a citywide vote can be held during the Feb. 27 presidential primary.

“I believe a good portion of us don't feel comfortable putting this on the ballot for February," Santiago-Romero said Monday. "But there's been discussion about potentially putting it on in November which I am more comfortable with given that would allow for discussion questions, deliberations, any amendments.”

Duggan touts his split-rate property tax idea, dubbed the Land Value Tax Plan, as a gamechanger. He seeks to change the city's property tax system by giving 97% of city homeowners an average tax cut of 17% while doubling the rate for owners of empty or neglected land.

Detroit's property taxes are among the highest in the nation. Residents pay a total of nearly 67 mills, according to the Citizens Research Council of Michigan. A mill is equal to $1 of tax for every $1,000 of taxable value.

But the plan is on for hold for now. The Democratic-controlled Michigan House on Thursday pulled the proposal from its agenda after failing to garner enough support for the policy among the chamber's 56 Democratic members. The house adjourned after a member had a medical emergency and was taken to a hospital.

Duggan spokesman John Roach didn't comment directly on the effort by the four council members. He pointed out Detroit councilmen Coleman A. Young II and Fred Durhal III — both former state lawmakers — support of the measure.

Young said he also lobbied state legislators on the proposal and believes "it is a good thing to cut property taxes for Detroiters, period."

But he too also urged the issue be pushed back to the November 2024 ballot instead of February.

"This gives us more time for voter engagement and voter education," Young said in a statement.

The mayor's plan would require the approval of both the Michigan Legislature and then city voters. He seeking legislative approval by the end of this month so he can bring the measure before City Council in November.

In a statement Friday, Waters expressed "gratitude for those courageous bipartisan supporters of democracy in Detroit that did not cave in to hurry up politics."

Waters said that she launched "a legislative full court press” that “torpedoes” the legislation. Waters could not be reached for comment Monday.

"I am not on the side of opposing this just on the side of giving us proper process,” Santiago-Romero said.

Whitfield-Calloway, at a town hall meeting three weeks ago, also expressed similar concerns of slowing down the process more than being opposed to the measure.

House Speaker Joe Tate, D-Detroit, has signaled an interest in amending Duggan's land value tax legislation to require it to placed on a November general election ballot — when more voters turn out — instead of a presidential primary.

laguilar@detroitnews.com