Quote:
Originally Posted by PiKA2001
Do you get a refund on city income taxes at the end of the year? I know that the rate is 1.25% for non residents and 2.5% for residents. I'd like to see Detroit reform their tax system, the taxes are outrageous. I was looking at buying a house in the city but after finding out the Property tax millege rate was 68 (compared to Royal Oak being 34 and Grosse Pointe being around 54) it would be too much. That $135,000 house in Palmer Woods had a property tax bill of $11,000. Ridiculous.
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I actually usually owe them between $9 and $11. To change the amount withheld, I'd also have to change the amount withheld from the state because they use the same number of exemptions, which is annoying. The current rate is 1.5% for non-residents and 3% for residents. When Karmanos moved CompuWare headquarters into the city, they gave everybody a 1.5% raise to make up for it. He seemed like a decent guy until he gave Kwame a job..lol. I know people who have walked away from their houses in the city proper because of the crazy property tax rates and the income tax (not to mention their home owners and auto insurance, but we'll stick to taxes here). Some of them bought foreclosed houses with cash for about 3 years worth of property taxes on the homes they walked away from.
If you work part time in the city, you only have to pay taxes on wages earned while working in the city. So, for example, if you work in home health care and some of your patients are in Detroit but some are in a suburb, you can track your hours. Those people get refunds. People started claiming hours spent working from home as non-city work hours and that was made illegal last year.
ETA: I've always wondered what proportion of the total income tax for the city comes from non-residents vs. residents. Since the CEOs and execs for so many major companies work in the city proper, along with all the doctors at the major hospitals, professionals, etc. I think non-residents probably pay a larger proportion of the total revenue.