The Detroit News
January 29, 2026
Candice Williams
Jared Fleisher, CEO of Bedrock, laid out a vision Thursday to reform Detroit’s property tax system, aiming to make the city more attractive to residents, developers and businesses.
The package of reforms includes what Fleisher calls a suite of tools involving land value tax, local option excise tax and tax abatement reform. He spoke during a keynote address at the Detroit Policy Conference, held at The Department at Hudson’s.
“My goal today is to provide some conversation starters,” he said. “I don’t know if these are the absolute right ideas. I certainly don’t think they’re the be-all and the end-all, but the point is to throw out conversation starters that keep this critical conversation going.”
Fleisher outlined Detroit’s structural tax challenges, noting the city’s property tax rate of 82.2 mills, which he called the highest among major U.S. cities. He said it discourages development and forces most projects to seek tax abatements. The problem is structural, not due to overspending, he said.
“The key is good policy and forward progress …” he said. “This idea of having an overall structure that’s more pro-growth, that’s the ultimate answer for Detroit, because the only way to truly ultimately get us to a place where we’re 40 mills, like you see in Grand Rapids, is to grow.”
Fleisher said he was confident implementing these tools could generate at least $65 million in new revenue, it could potentially allow the city to lower property tax rates by up to 8 mills. If revenue reached $80 million, he said the rate could drop by as much as 10 mills.
To address this, Fleisher proposed a suite of reforms:
Land value tax: In 2023, the city of Detroit unveiled a proposal to increase the tax on vacant land to reduce taxes on occupied properties. Fleisher said proposing a more modest land value tax, as part of a broader suite of reforms, could achieve the same goal without excessively taxing landowners.
Local option excise tax: Fleisher suggested implementing a local option excise tax focused on the greater downtown area, which draws in visitors and tourists. He said this approach would create a more efficient, smarter tax structure, without impacting consumer behavior.
Tax abatement reform: Rather than steep, short-term abatements, Fleisher suggested smaller abatements over longer periods. He said the abatements could be “half as generous, twice as long.” He said that creates soft landing for developers and steady revenue for the city.
“If each of these policies is independently a better approach for our community and a better approach for our economy, it’s a win-win,” he said.
Acknowledging the need for relief, John Roach, spokesperson for Detroit Mayor Mary Sheffield, said she has commissioned several studies to explore options for reducing Detroit’s “onerous property tax burden.”
“She has directed her staff to participate in a working group on the matter — as property tax reform and revenue generation continue to be major focuses of her Administration,” Roach wrote in an email Thursday. “Once a strategy is developed, the Mayor plans to do extensive community engagement to ensure any approach is in the best interest of Detroiters and has broad support.”