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LANSING – Detroit Democrats today called on the Republican-led Senate to pass a plan that will cut taxes for homebuyers and help spur Michigan's languishing home sales market. The plan passed the Michigan House of Representatives on March 14, 2007, with bipartisan support and has been stalled in the Senate for nearly a full year.

"Detroit has been especially hard-hit by the foreclosure crisis," said State Representative Bert Johnson (D-Detroit). "While the Senate continues to drag its feet, the people in Detroit are suffering. The Senate must act now to cut taxes and get Michigan back on track."

The House Democrats' plan creates an 18-month window during which anyone who buys a house will inherit the seller's taxable value, and will not have their taxes uncapped for as long as they own the home. Currently, the assessed taxable value of a home has strict limits on how much it can increase annually – either by 5 percent or the rate of inflation, whichever is lower. However, when the property is sold, its assessment is uncapped. In some cases, the amount of taxes a new homeowner must pay doubles, making it difficult for working families to be able to afford to buy a home. Under the House Democrats' plan, a homebuyer could save up to $1,513 on the purchase of a $100,000 home or up to $3,405 on a $225,000 home, based on statewide average tax rates.

"I hear more every day about Realtors being forced to take second and third jobs because they just can't make a living right now selling houses," said State Representative Coleman Young II (D-Detroit). "This plan will get people back to work and pump money into our local economy."

Michigan has been hit hard by home foreclosures, with many neighborhoods bogged down by numerous vacant houses that have been on the market for months. Cutting taxes for homebuyers will help spur home sales, which will bring more money back into Michigan's economy and help create jobs. Foreclosure filings in Wayne County shot up nearly 70 percent in 2007 compared with 2006.

"In the year that has passed since the House approved this plan, the housing market has gotten significantly worse in Detroit," Johnson said. "Empty houses drag down our neighborhoods and our property values. The Senate must take action to get more buyers into the housing market, which will help strengthen our community and our economy. The time to act is now."