bureaucrats, tax accountants, and lawyers of Detroit. /S
to 6.9 (received)..an -87.45% imbalance.
Whose gonna make-up that unbalance..You guessed it.
Posted on 09/08/2014 6:36:44 AM PDT by MichCapCon
In the fourth quarter of its fiscal year 2014, the city of Detroit projected it would bring in $55 million in property taxes. Instead, it collected just $6.7 million, about $48.3 million short of what it expected.
The city revealed the shortfall in its most recent filing with the Michigan Department of Treasury by Emergency Manager Kevyn Orr.
“It's a combination of many factors,” said Bill Nowling, spokesman for Orr. “Clearly, collections is an issue, but so it is the assessment process itself. In many cases, the city is carrying assessments for properties that are blighted or abandoned and those amounts go into making up that $55 million number.”
That shortfall in property taxes played a big role in why the city was $50.2 million in the red in the fourth quarter, which ran from April to June.
In the third quarter, the city of Detroit fell $19.3 million short of property tax revenue collections. However, in the first two quarters of FY 2014 (July through December of 2013), the city took in a combined $52.1 million more in property taxes than projected.
Robert Inman, a professor of finance, economics and public policy at the University of Pennsylvania's Wharton School, called the recent shortfall "extraordinary."
"While there are surely many possible explanations for the extremely low yield of the property tax recently observed for Detroit, the fact remains that a 10 to 15 percent collection rate for the city's property tax compares to that in many third world cities," Inman said. "And perhaps for third world reasons: abandoned properties, declining values and thus an inability to pay, and finally, simply tax cheating. Detroit has its work cut out for it."
James McTevia, a financial consultant and turnaround specialist, said the revenue projections aren't surprising since they came during a period of insolvency.
"It will be years before Detroit is stable enough for anyone to make realistic projections and so I am not at all surprised the projections are substantially off," McTevia said. "One of the worst things an insolvent company/city can do is base a restructuring plan on poor projections. They will soon be back to court unless someone has a tight hold on the checkbook!"
THE KINGPINS OF CHICAGO CRIMINAL POLITICS IN OUR WH wasted no time.....they had a stranglehold on the Census (AND US Treasury) from day one.
The minute Obama/Valerie/Rahm/Axelrod/Geithner, and that diseased bunch of criminals, landed in the WH they did two things that were apparently crucial to their evil plans
(a) they took control of the US Census;
(b) Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (the IRS).
THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.
When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings of the Treasury that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09
More here: http://online.wsj.com/article/SB124113406528875137.html
The connection between the IRS targeting and the WH's malevolent parasites at Treasury becomes clearer.
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THIS MADE ME LAUGH OUT LOUD shortly after quitting his powerful WH job as Obama's COS, Rahm held a presser declaring he "just remembered" he really, Really wanted to be Mayor of Chicago. Then Rahm announced he had magically "raised" $10 million for his campaign in "just a matter of weeks."
(waiting for hysterical laughter to die down).
Ya gotta wonder how much Wall Street Rahm wired offshore when Obama put him in charge of the entire US Treasury.
Maybe we can just move the US-Canada border a few miles to the north (yes, Canada is south of Detroit) one night like leaving a very ugly baby on Canada’s doorstep. Of course, that could be considered an act of war.
THEN he got the bill for the PAST due property taxes. It was tens of thousands of dollars! The guy basically said the hell with this and walked away!
If I was mayor there and had the city counsel on my side here is how I would at least try to fix this problem.
I would have another property tax sale in which ALL past due property taxes are wiped CLEAN. That is on ANY abandoned property. That includes old factories. Anyone buying an abandoned house gets a big discount on taxes until they are finished "fixing" the place up then a discount for 5 years as long as they live there. If you buy several empty lots around the house you pay taxes on a rate for farmland. I think you would start a new land rush and revive the place.
A while back, the Detroit News did a story of who are the biggest employers in Detroit. It was GM, Chrysler, the Hospitals but mainly the Public Sector jobs may have been the biggest. One question related to this is do these employed folks even live in Detroit? The total number of these large employers was no where near the 700,000 residence which rings true, with the data out their that up to 70% of the residents maybe on various forms of assistance. IF they are on assistance, are their Landlords paying their property taxes?
Tell me how this all works if Detroit comes out of bankruptcy and has 1/10 the revenue they projected? How does it survive?
Not good....
The fault is all those white residents who moved to the suburbs. Somehow they have to make them pay the shortfall.
Average resident figures they don’t provide services, so why pay the taxes?
And the city is in a Catch 22 because the last thing they need is more people leaving and more abandoned property.
Quick! Someone call the UN. They made the city give their water away for free, so why not give all the city services away for free? What? Me worry?
“Don’t laugh, It’s truer than you think, from 55m (projected) to 6.9 (received)..an -87.45% imbalance.”
Problem? Not to most liberals and democrats. They never anticipate the flip side of events, only unending taxation to overcome growing deficits. After all 2 + 2 = whatever in the new mathematics frontiers being taught today.
It’s always one way thinking and when it fails it’s Bush’s fault. If it were to succeed, glorious leader would claim all credit. But glorious leader will be on the golf course while Detroit and the nation sinks into bankruptcy.
ANYONE who lends money to or buys a municipal bond or ANY municipality, county and/or state run by DemocRATS is out-of-their financial mind and needs to understand they are likely to eventually lose most or all of their “investment”.
The “investor” also needs to understand that the government employee overlords’ pensions and benefits will be protected above all else.
“The British captured Detroit in the War of 1812. We should have let them keep it....”
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After they vote for independence from Britain, perhaps we should give Detroit to Scotland as a going away gift.
At this rate, third-world countries will start sending donations to Detroit.
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