Bad Things Can Happen When U.S. Towns Rely on One Taxpayer
- DTE Energy filed tax appeal on aging power plant in Michigan
- City of Monroe could see a quarter of its budget wiped out
DTE Energy Co.'s Monroe Power Plant stands in Monroe, Michigan, U.S., on June 30, 2014.
Photographer: Jeff Kowalsky/Bloomberg
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American cities routinely dole out tax breaks and other subsidies to lure big companies to set up shop. But one small town in Michigan is discovering the risk that comes with relying too heavily on corporate taxpayers.
Monroe, a 20,000-resident city 40 miles (64 kilometers) south of Detroit, could see a quarter of its revenue wiped out if DTE Energy Co. wins a challenge to its property-tax bill for a coal-fired power plant. That could jeopardize funding for crucial services from public safety to special education, Monroe County’s chief financial officer, Michael Bosanac, wrote in an email.