Mayoral candidate Fred Durhal wants to target blight with an “accountability tax” while cutting annual property tax bills for homeowners by $400 to $600 as part of a new policy platform his campaign released on Monday.
Durhal, one of nine candidates running for mayor in the Aug. 5 primary, said the blight tax is modeled off reforms Atlanta adopted in 2024 to punish inattentive property owners with a tax that’s 25 times higher than the normal millage rate. Durhal said hiking taxes for irresponsible land speculators would create new revenue to cover tax cuts for homeowners and slash the operating property tax millage by 19.5 mills.
“Charging 25 times more than what the property tax rate millage is sends a strong signal that we are becoming aggressive on blight and we’re not going to tolerate it,” Durhal said. “When you talk to residents, having the ability to stay in their homes and blight are two of those key issues that we hear.”
Durhal’s was not among four candidates who were invited to a televised debate at 7 p.m. Monday hosted by WDIV-TV (Channel 4). Durhal’s policy proposal was released publicly hours earlier. He said the timing is coincidental, but the document is meant to contrast with opponents who Durhal argued have not shown the same level of expertise.
“We already know from being at mayoral forums and on the debate stage (previously) they’re not talking about anything comprehensively,” Durhal said. “We believe they don’t have a real plan. We’re steadfast on our plans. By the time we pass through the primary, we’ll have more concrete numbers.”
The City Council member is running as a pro-development candidate who is “unapologetic” in his support of using tax breaks to coax business to Detroit. He wants to dramatically expand the Downtown Development Authority’s footprint to include Corktown, Midtown and along Gratiot Avenue near Eastern Market, opening up more area where the authority could capture and reinvest tax dollars. Durhal said improving commercial corridors along major streets will help justify more investment in public transit along those routes.
Durhal said his tax reform plan will sound similar to those familiar with a split-rate or “land value tax” proposal that was unsuccessfully pushed by Mayor Mike Duggan. But it has a key difference. Durhal’s plan wouldn’t eliminate neighborhood enterprise zones which offer temporary tax cuts for homeowners in specific areas.
Durhal said his plan would also offer more significant tax savings for homeowners compared to Duggan’s plan. A policy document shared Friday with BridgeDetroit doesn’t include specific numbers on tax rates or revenue projections, but Durhal said his campaign consulted several unnamed economists and former Duggan officials.
Durhal plans to work with state partners to renegotiate the terms of the school debt millage, which taxes non-homestead properties to cover old debt attached to Detroit Public Schools. Voters renewed the 18-mill tax in 2024.
The 12-page document focuses on five main topics: Economic and business reform, tax relief for homeowners and businesses, improving public safety and quality of life, stabilizing neighborhoods and education.
Businessman Jonathan Barlow released an 11-page policy platform earlier this year, but most candidates have not shared detailed documents. Council President Mary Sheffield, considered a front-runner in the race, has plans for her first 100 days posted online, as does former council president and nonprofit CEO Saunteel Jenkins and Attorney Todd Perkins.
If elected, Durhal said he’d spend the first 90 days modernizing tax assessments, extending tax breaks that are soon to expire, expanding the boundary of the Downtown Development Authority and establishing commercial corridor improvement authorities to fund “Main Street”-style redevelopment across each council district.
Durhal also wants to create a dedicated tax relief fund using annual budget surpluses to help reduce the city’s debt millage. Tax reforms require approval from the Michigan Legislature, meaning Durhal would have to lobby state lawmakers to support his cause.
Part of Durhal’s plan addresses the so-called “abatement cliff,” which refers to the upcoming expiration of tax breaks secured by developers that would have otherwise struggled to finance their projects. Durhal says the end of those tax breaks could cause landlords to hike the cost of rent or spike a wave of foreclosures.
“If landlords raise rents to market rate, you will see a significant amount of folks losing their housing,” Durhal said. “Those are extreme concerns.”
He’s proposing short-term extensions of two to four years and allowing property owners to phase in their tax increases over time.
“The carrot would be that they don’t have to pay the full amount of taxes based on that rate of inflation; they get to extend the life of the abatement to avoid the abatement cliff,” Durhal said. “We win because we’re able to get (increased) revenue a little bit earlier, which we are desperately going to need, considering we don’t have (pandemic relief) dollars.”
Mayoral candidates were asked about their plan on continuing tax incentives to keep businesses in the city during a debate on Mackinac Island in May. Jenkins said more than half of tax abatements will expire by 2030, requiring the mayor to extend abatements.
“Otherwise we’ll start to lose businesses; we’ll start to lose jobs,” Jenkins said.
Sheffield said she wants to address the core of why tax breaks are needed in the first place: “because we face some of the highest property taxes in the country.” She’s also studying “structural property tax reform,” including new taxes on downtown activities, but Durhal argues her plan doesn’t go far enough to raise revenue or provide enough tax relief.
Durhal also criticized a Community Benefits Ordinance that requires developers to negotiate with residents for neighborhood investments in exchange for tax breaks. Durhal said that the process inflates the cost of projects and makes development more unpredictable.
Durhal supports increasing pay for police officers, more patrols in high-crime areas, and continued investment in police surveillance tools Project Green Light and ShotSpotter. He also supports creating a new Office of Violence Prevention to address the root causes of violence and boosting funding for the Community Violence Intervention program.
The council member’s plan includes forming a Detroit Education Commission made up of school officials, unions, and community stakeholders. The commission would implement Individualized Learning Plans for students, promote career and college readiness by 11th grade, and expand access to programs like the Detroit Promise and Grow Detroit’s Young Talent.