Andy Warhol once said, “Good business is the best art.” And while he wasn’t referring to art museums per se, he might as well have been. These days, museums across the country are fighting to stay in the black—and now some of them are asking folks to pay more in property taxes to make up the shortfall.
Last Tuesday, voters in three Michigan suburbs agreed to a raise their property taxes to save the Detroit Institute of Arts (DIA), which has struggled mightily with its finances for the past decade. Unlike most major metropolitan museums, the DIA operates without a significant endowment and receives no financial support from the city of Detroit or the state of Michigan.
Voters approved what’s known as a millage tax, a fee assessed on the value of your home. The more your property is worth, the higher your tax. In this case, the DIA levy costs approximately $15 for every $150,000 of a home’s fair market value, and will raise around $23 million a year from Oakland, Macomb, and Wayne counties (the last of which includes Detroit).