Property taxes are regressive, affecting renters more than homeowners. That is because rental properties pay non-homestead taxes – about 27% higher – that are then passed on to renters.
In simple terms, rent can never be less than property taxes. As tax increases, so does rent. Landlords can also compensate by offering shabbier products; or just get out of the business entirely, which reduces affordable housing.
Higher rents create a strong incentive to seek less-expensive housing elsewhere, such as in Ypsilanti Township, 5 minutes away. The loss of this mobile population would have numerous negative effects on the community, especially on small businesses.