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.
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