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With big bucks potentially at stake, Mike Duggan's lawyers turn up the heat in an effort to uncover city income tax evaders. Michigan Radio's Sarah Cwiek digs up this dramatic news:
The city of Detroit is suing Bedrock Management Services for allegedly failing to turn over information about tenants in some rental properties. . . .
The lawsuit says that for over a year, Bedrock has repeatedly ignored requests to turn over tenant information from four downtown Detroit properties. It wants tenant information from other Bedrock properties as well.
Dan Gilbert, left, says he's "keenly aware of, and respectful of, the privacy rights of our clients and customers."
Bedrock, downtown's No. 1 landowner, is the real estate arm of Dan Gilbert's business network. "Gilbert calls what the city is asking for 'confidential personal information,'" Cwiek writes, "and says Bedrock won't release it without a court order."
The case is a get-tougher step in an effort to crack down on renters evading Detroit's 2.4-percent local income tax. By using the suburban address of a relative or friend, tenants cut their income tax rate in half to 1.2 percent if they work in Detroit or pay nothing if their job is based elsewhere. (They also get cheaper vehicle insurance.)
The city wants downtown and Midtrown tenant lists since 2014 to cross-check names, addresses, Social Security numbers and employers with federal filings. Income taxes are "the largest single source of revenue for the city’s general fund," says the Wayne County Circuit Court filing.
Gilbert responds in writing to the broadcast reporter's inquiry:
"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.
"Our family of companies has always been keenly aware of, and respectful of, the privacy rights of our clients and customers.
"We value the strong relationship our organization shares with Mayor Duggan and our city government partners. We have a dispute over this issue, and in this situation the privacy rights of our tenants must take priority."
