DETROIT (WXYZ) — Detroit Mayor Mary Sheffield is pushing for a 30 to 60 percent cut in property taxes to ease the burden on homeowners, but the move could leave a significant hole in the city's budget.
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Mary White has lived in the Fitzgerald neighborhood on Detroit's west side since 1979. She said the city's high property taxes have long put her finances in a chokehold.
"It puts a great burden on you, especially when you're a senior, and you're retired, you're living on a fixed income, and everything else is going up," White said.
Sheffield wants to cut property taxes to help Detroiters like White, but the city needs replacement revenue. She believes growing the city's population is a key part of offsetting the cuts.
"The more people we have coming to Detroit, staying in Detroit, working good jobs, paying property taxes, that increases our general fund revenue to offset property taxes," Sheffield said.
Sheffield is also eyeing other revenue-generating options, like an entertainment tax, which would require changes to state law.
"We are looking at all options that will have the least amount of impact on everyday Detroiters, and all of those options will go to Lansing at some point," Sheffield said.
EXTENDED VIDEO: Detroit Mayor Mary Sheffield talks about property taxes and affordability in the city
Eric Lupher is the president of the Citizens Research Council, a nonpartisan group that provides independent information on state and local government issues. He said about 30 percent of the property taxes Detroit homeowners pay goes toward city debt. The rest covers school district taxes, the intermediate school district tax, the D.I.A., the Detroit Zoo, and Wayne County taxes.
"It could work. It's worth pursuing. It's not going to be easy," Lupher said.
Lupher said population growth will require more new housing stock and years of time before it can offset a tax cut. Without replacement revenue, he warned the city would have to cut services.
"What do you do with that? You either cut services, and we all know that Detroit services, you know, they need to improve, they don't need to regress," Lupher said. "That's the bottom line. Cutting services, finding a replacement, encouraging that growth, facilitating that growth. All of those are gonna take time, effort, cooperation from a lot of players in the city and outside of the city."
Detroiters like White said they need property tax reform and have waited decades for it.
"If the mayor can implement the things that she's saying, it would be fabulous and fantastic for, especially, for our seniors, you know, trying to hold on and hang on to what we have," White said.
Sheffield is hopeful a final property tax reform deal can be reached within the next four years.
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