Detroit City Government Revenues
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CitizensCitizens ResearResearchch CCouncilouncil ofof MichiganMichigan DetrDetroitoit CitCityy GovernmentGovernment RevenuesRevenues AprilApril 20132013 RepReporortt 382382 CELEBRATING 97 YEARS OF INDEPENDENT, NONPARTISAN PUBLIC POLICY RESEARCH IN MICHIGAN Board of Directors Chair Vice Chair Treasurer Jeffrey D. Bergeron Terence M. Donnelly Aleksandra A. Miziolek Jeffrey D. Bergeron Ingrid A. Gregg Brian Peters Ernst & Young LLP Earhart Foundation Michigan Health & Hospital Association Michael G. Bickers Marybeth S. Howe Kevin Prokop PNC Financial Services Group Wells Fargo Bank Rockbridge Growth Equity, LLC Beth Chappell Nick A. Khouri Jay Rising Detroit Economic Club DTE Energy Company Detroit Medical Center Terence M. Donnelly Daniel T. Lis Lynda Rossi Dickinson Wright PLLC Kelly Services, Inc. Blue Cross Blue Shield of Michigan Randall W. Eberts Sarah L. McClelland Jerry E. Rush W. E. Upjohn Institute JPMorgan Chase & Co. Meritor, Inc. David O. Egner Michael P. McGee Michael A. Semanco Hudson-Webber Foundation Miller, Canfield, Paddock and Hennessey Capital LLC New Economy Initiative Stone PLC Terence A. Thomas, Sr. Laura Fournier Aleksandra A. Miziolek Thomas Group Consulting, Inc. Compuware Dykema Gossett PLLC Kent J. Vana Eugene A. Gargaro, Jr. Jim Murray Varnum Manoogian Foundation AT&T Michigan Theodore J. Vogel John J. Gasparovic Paul R. Obermeyer CMS Energy Corporation BorgWarner Inc. Comerica Bank Advisory Director Louis Betanzos Board of Trustees Chair Eugene A. Gargaro, Jr. Terence E. Adderley Ralph J. Gerson Alphonse S. Lucarelli Nancy M. Schlichting Kelly Services, Inc. Guardian Industries Corporation Ernst & Young LLP, Retired Henry Ford Health System Jeffrey D. Bergeron Eric R. Gilbertson Sarah L. McClelland John M. Schreuder Ernst & Young LLP Saginaw Valley State University JPMorgan Chase & Co. First National Bank of Michigan Stephanie W. Bergeron Allan D. Gilmour Patrick M. McQueen Lloyd A. Semple Walsh College Wayne State University McQueen Financial Advisors University of Detroit Mercy School of Law Beth Chappell Alfred R. Glancy III Robert Milewski Lou Anna K. Simon Detroit Economic Club Unico Investment Group LLC Blue Cross Blue Shield Michigan State University Mary Sue Coleman Thomas J. Haas of Michigan Scott C. Swanson University of Michigan Grand Valley State University Glenn D. Mroz Charter One & RBS Citizens Matthew P. Cullen David S. Haynes Michigan Technological University S. Martin Taylor Rock Ventures LLC Northern Michigan University Mark A. Murray Amanda Van Dusen Tarik Daoud James S. Hilboldt Meijer Inc. Miller, Canfield, Paddock Long Family Service Center The Connable Office, Inc. James M. Nicholson and Stone PLC Stephen R. D’Arcy Paul C. Hillegonds PVS Chemicals Kent J. Vana Detroit Medical Center DTE Energy Company Don R. Parfet Varnum Richard DeVore Daniel J. Kelly Apjohn Group LLC Theodore J. Vogel PNC Bank Deloitte. Retired Philip H. Power CMS Energy Corporation John M. Dunn David B. Kennedy The Center for Michigan Gail L. Warden Western Michigan University Earhart Foundation Keith A. Pretty Henry Ford Health System, David O. Egner Mary Kramer Northwood University Emeritus Hudson-Webber Foundation Crain Communications, Inc. John Rakolta Jr. Jeffrey K. Willemain New Economy Initiative Gordon Krater Walbridge Deloitte. David L. Eisler Plante & Moran PLLC Douglas B. Roberts Ferris State University David Leitch IPPSR- Michigan State University David G. Frey Ford Motor Company Milt Rohwer Frey Foundation Edward C. Levy, Jr. George E. Ross Mark T. Gaffney Edw. C. Levy Co. Central Michigan University Eugene A. Gargaro, Jr. Daniel Little Gary D. Russi Manoogian Foundation University of Michigan-Dearborn Oakland University Citizens Research Council of Michigan is a tax deductible 501(c)(3) organization Citizens Research Council of Michigan Detroit City Government Revenues April 2013 Report 382 CITIZENS RESEARCH COUNCIL OF MICHIGAN MAIN OFFICE 38777 Six Mile Road, Suite 208 • Livonia, MI 48152-3974 • 734 -542-8001 • Fax 734-542-8004 LANSING OFFICE 124 West Allegan, Suite 620 • Lansing, MI 48933-1738 • 517-485-9444 • Fax 517-485-0423 CRCMICH.ORG DETROIT CITY GOVERNMENT REVENUES Contents Summary .................................................................................................................................. v High Service Needs .................................................................................................................... v Municipal Tax Revenues ............................................................................................................ vi Property Tax ....................................................................................................................... vi Municipal Income Tax .......................................................................................................... vi Utility Users’ Excise Tax .......................................................................................................vi Casino Wagering Tax .......................................................................................................... vii Total Revenues ........................................................................................................................ viii Introduction ............................................................................................................................. 1 High Service Needs .................................................................................................................... 2 Diversified Tax Structure............................................................................................................. 3 Municipal Tax Revenues ..........................................................................................................4 Property Tax .............................................................................................................................. 4 Residential Property ............................................................................................................. 4 Residential Vacancies ...........................................................................................................5 Demolition ........................................................................................................................... 6 Commercial and Industrial Property ....................................................................................... 7 Special Tax Rolls ................................................................................................................ 10 Personal Property ...............................................................................................................10 Taxable Value Comparisons................................................................................................. 11 Potential Property Tax Yield ................................................................................................ 14 Property Tax Rate .............................................................................................................. 15 The Property Tax Burden .................................................................................................... 16 Delinquencies .................................................................................................................... 17 Municipal Income Tax ............................................................................................................... 19 Employment in Detroit........................................................................................................ 19 Income Tax Rates .............................................................................................................. 21 Required Rate Reductions ................................................................................................... 21 Detroit Income Tax Revenues ............................................................................................. 22 Non-Filers.......................................................................................................................... 23 Shifting Responsibilities for Tax Collection ............................................................................ 23 Utility Users’ Excise Tax ............................................................................................................ 23 Casino Wagering Tax ................................................................................................................ 24 FY2010 Tax Burden Comparisons .......................................................................................... 25 Increasing Tax Revenues .......................................................................................................... 28 Taxes and Economic Development ............................................................................................ 29 Citizens Research Council of Michigan i CRC Report Non Tax Revenues ................................................................................................................. 32 State Revenue Sharing and Other State Source Revenues .......................................................... 32 SRS and EVIP ....................................................................................................................32 Conditions for Receiving Economic Vitality Incentive Program Payments ................................ 36 Licenses, Permits, and Inspection Charges................................................................................