Thursday, February 21, 2013

Why Pay Taxes?

Half of Detroiters don't pay property taxes. And one reason why? Their properties are severely over-valued, and they receive no services in return.
Delinquency is so pervasive that 77 blocks had only one owner who paid taxes last year, The News found. Many of those who don't pay question why they should in a city that struggles to light its streets or keep police on them.
"Why pay taxes?" asked Fred Phillips, who owes more than $2,600 on his home on an east-side block where five owners paid 2011 taxes. "Why should I send them taxes when they aren't supplying services? It is sickening. … Every time I see the tax bill come, I think about the times we called and nobody came."
Detroit has the highest property taxes among big cities nationwide and relies on assessments that are seriously inflated. Many houses are assessed at more than 10 times their market price, according to new research from two Michigan professors.
It's no wonder people don't pay. Why should they? 
Lee has dutifully paid his nearly $4,000 annual bill despite believing it's too much. His stately brick Tudor in the University District is assessed at $53,810, meaning the city pegs its market value at $107,620. A recent appraisal he paid for found the house was worth $35,000.

"It was my commitment to seeing the city working," said Lee, 67, a consultant who has lived there since 1982. "I know our difficulty is we are still operating like we have a million people. We have to have somebody to support that. … But it's not fair that such a small percentage is paying."
The rule of law and order is only respected by a few, and in good conscience, they pay. As they should. But something, mutiny or anarchy, is resulting, when so few respect the rule of law. And it's not wonder why the city is going bankrupt.

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