Malachi Barrett, a reporter with Bridge Detroit, has extensively covered and continues to cover Detroit’s split-tax rate proposal. In this podcast, Malachi sits down with Research Council analyst James Tatum, director of the Research Council’s Detroit Bureau to discuss the pros and cons of the proposal.

In a nutshell:

• The state Legislature is currently considering a bill that would permit Detroit to levy its version of a land value tax.
• The so-called split-rate tax proposal would split the levy between land and built structures, with a higher tax on land to incentivize development and disincentivize land speculation.
• The added penalty to land speculation could worsen the city’s problems with vacant land if speculators decide to abandon property rather than pay more in taxes or develop the land.