City of Detroit sues Bedrock for info on any tax-evading tenants
The city has contended for years that many residents who live in the city evade the city's residential income tax by claiming residence in the suburbs.
The city has now sued Bedrock to get tenant information on several of its properties. The city alleges that Bedrock has withheld the information for the past year despite city requests, Michigan Radio said in the first report of the lawsuit.
Gilbert issued a statement citing issues of privacy of tenants as a reason for not providing the information the city wants.
"The
"We do not believe we have the legal right or contractual permission to release the highly sensitive personal information of all our tenants to any third party, including any governmental entity, without the tenant's consent to do so, or a constitutionally valid final court order. ... We value the strong relationship our organization shares with Mayor [
The city's efforts come about a year after officials first told the
In those earlier lawsuits, the city said it believed "many residents" living in the city were using the suburban address of a relative or friend "for purposes of obtaining lower auto insurance rates and/or the purpose of avoiding city income tax liability," the
Claiming a suburban address can help avoid the city's expensive auto insurance rates.
City Treasurer
"The city is pursuing passage of a regulation to require landlords to annually report tenant rolls to the city's tax compliance branch and we continue to review tenant information to identify non-filers in the apartments and lofts in the city," McLellan told the
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