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29/04/2019 |
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Detroit’s exceptionally high tax rate disproportionately burdens low-income residents, threatening their ability to maintain homeownership and attain long-term financial stability. Michigan law (MCL 211.7u) requires local governing bodies to make a Poverty Tax Exemption (PTE) available for homeowners in poverty who own and occupy their property. By reducing or eliminating property taxes for low-income homeowners, this policy works to alleviate poverty by decreasing the household tax burden and preventing the devastating financial consequences of property tax foreclosure.
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