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Detroit targets certain buildings in tax evasion crackdown

Photograph of Downtown Detroit
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Detroit's skyline.

Detroit is cracking down on those who owe back income taxes by launching an effort targeting thousands of potential tax evaders living or working at certain properties in downtown and Midtown.

Detroit corporation counsel Melvin Butch Hollowell tells the Detroit Free Press the city identified at least 7,000 potential tax evaders at 33 properties, which include the Penobscot Building, Cadillac Square Apartments and Broderick Tower.

The city filed lawsuits against at least four entities, seeking personal records including addresses and social security numbers of residents - and in one case, employees. Officials say that on average about 15% filed city tax returns for 2014 at the properties.

Detroit's income tax rate for residents is 2.4%. Non-residents who work in Detroit must pay a rate of 1.2%.

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