During a recent government meeting, representatives from the Black Caucus Foundation of Michigan and Motor City Law presented a critical overview of the city of Detroit's ongoing property tax recovery efforts, highlighting significant financial losses and the need for legal support to recover outstanding taxes.

KB Stalworth, chairman of the Black Caucus Foundation, reported that the city has lost approximately $100 million in property tax recovery due to decisions made by the law department. He detailed the history of the recovery program, which began in 2013 when the Michigan State Treasurer's office identified gaps in the Wayne County tax collection system. Stalworth emphasized that while tax collections occurred, they were largely voluntary, leading to a decline in property equity and destabilization of the housing market.

The presentation outlined a series of legal agreements and strategies initiated by Motor City Law to recover delinquent property taxes. Stalworth noted that despite the city entering into a legal representation agreement with Motor City Law in 2017, the law department's reluctance to acknowledge the ongoing recovery process limited their ability to collect taxes effectively. As a result, a significant portion of potential revenue has been lost due to the expiration of the statute of limitations.

Stalworth urged the city to honor the existing legal representation agreement, which would allow Motor City Law to pursue $111 million in judgments obtained on behalf of the city. He also highlighted legislative changes that now empower Detroit to manage its own tax collection processes, a shift that could enhance future recovery efforts.

Council members expressed interest in reviewing the recovery plan and legal agreements referenced during the presentation. The meeting underscored the urgency of addressing the city's financial challenges and the importance of effective legal strategies in recovering lost revenue.