Detroit hopes tax cut slows flight from city

The Detriot Free reports:

n a move aimed at luring residents back to the city of Detroit and stopping the exodus to the suburbs, long-awaited tax relief might be coming to Detroit homeowners who live in some of the city's best neighborhoods.

Homeowners in neighborhoods, such as Palmer Woods, Rosedale, Sherwood and the Berry Subdivision, stand to receive more than a 20% tax cut starting in January of 2007.

After six months of keeping mum on the issue, following repeated campaign promises last year, Mayor Kwame Kilpatrick's administration on Tuesday delivered to the City Council its list of the initial 25 neighborhoods eligible for the tax breaks.

The measure is the first step toward providing homeowners in established neighborhoods relief from the city's sky-high property tax rate and righting inequities in tax bills caused by state laws that can double or triple the taxes on a home after it is sold, city officials say. The city already provides such breaks for new construction.

The high tax burden puts Detroit at a disadvantage, city officials and real estate agents say, because potential homebuyers will choose to buy outside the city where their tax obligations are less.

"I'm hoping it will stem the tide of folks leaving Detroit," said Julie Castone, the city's assessor. "Once these neighborhoods are anchored, then we can try to do something in the surrounding neighborhoods."

The latest census data released last month show that the city continues to hemorrhage residents. Between 2000 and 2005, Detroit lost 61,000 people.

A step in the right direction.