|
Most
Detroit
homeowners
to see
property
assessment
reductions
this
summer
By Tell
Us
Detroit
via City
of
Detroit
DETROIT
(Tell Us
Det) -
For the
third
year in
a row,
most
Detroiters
will see
a
reduction
in the
assessed
values
on their
homes
when
they
receive
their
annual
Notice
of
Property
Assessment,
Mayor
Mike
Duggan
announced
today.
2016
Assessment
notices
are
being
mailed
this
week and
will
start
arriving
in
mailboxes
soon.
The
reassessment
follows
an
exhaustive
review
conducted
by Chief
Assessor
Gary
Evanko
and his
staff of
current
assessments
and
actual
home
sales
for the
two-year
period
between
October
1, 2013
and
September
30,
2015.
The
Mayor,
who has
expressed
his
commitment
to
correcting
assessments
that for
years
have
been too
high,
said
that
approximately
95% of
the
city’s
220,000
residential
properties
will see
a
reduction
of
5%-15%
percent
of their
property’s
assessed
value.
The
remaining
5% of
property
owners
will see
an
increase
of
5%-15%.
For many
Detroiters,
this
could
translate
to a
modest
reduction
in their
annual
property
tax
bill. It
also
means
that as
the
city’s
turnaround
continues
and
property
values
rise,
now is
the best
time to
purchase
a home
in
Detroit.
While
these
assessment
changes
are
based on
two
years of
data, a
recent
study
conducted
by
Dynamo
Metrics
shows
that in
the past
year
property
sale
prices
rose
dramatically
across
most
areas of
the
city.
Mayor
Duggan
said the
convergence
of the
city’s
rising
property
values
and what
may be
the last
round of
large
scale
assessment
drops
has
created
the
perfect
climate
for
people
interested
in
buying a
home in
Detroit.
“Right
now
there is
a lot of
interest
in
purchasing
homes in
Detroit
and
prospective
buyers
have a
great
incentive
to buy
now,”
said
Mayor
Duggan.
“As we
continue
with our
neighborhood
revitalization
strategy,
we
expect
property
values
to
continue
to rise.
Eventually,
assessments
will
follow.
Buying a
home in
Detroit
now will
lock new
homeowners
into a
taxable
value
based on
this
lower
assessment.”
Impact
on Tax
Revenue
The
impact
of the
lower
assessments
on city
revenue
is
expected
to be in
line
with the
Plan of
Adjustment,
which
projects
a 2%
reduction
in all
real
property
values
for
FY16-17,
according
to CFO
John
Hill.
“On an
overall
basis it
is
anticipated
that the
reduction
in
assessed
values
for
residential
properties
will be
a
decrease
of
approximately
10%,
although
we
anticipate
this
will be
substantially
offset
by the
increased
assessments
of
commercial
properties,”
Hill
said.
Hill
said he
expects
that
fairer
property
assessments
will
improve
property
tax
collections.“With
many
people
seeing
large
assessment
reductions,
we
expect
to see
an
increase
in the
number
of
homeowners
who pay
their
full
taxes,”
said
Hill.
“In the
near
term, we
expect
this
move to
keep
more
taxpaying
residents
in the
city. In
the long
term, we
believe
it will
help to
bring in
more new
homeowners
and help
to start
growing
our
residential
tax
base.”
“With
many
people
seeing
large
assessment
reductions,
we
expect
to see
an
increase
in the
number
of
homeowners
who pay
their
full
taxes,”
said
Hill.
“In the
near
term, we
expect
this
move to
keep
more
taxpaying
residents
in the
city. In
the long
term, we
believe
it will
help to
bring in
more new
homeowners
and help
to start
growing
our
residential
tax
base.”
What’s
Next
Last
week,
the city
mailed
out
notices
to every
city
homeowner
informing
them of
their
new
assessment.
Residents
should
note
that
this is
a notice
of
proposed
assessment
changes
and not
a tax
bill. If
they
still
choose
to
appeal
their
assessment,
the City
of
Detroit
Office
of the
Chief
Financial
Officer,
Office
of the
Assessor
will
begin
the
annual
Assessors
Review
appeal
process,
which
allows
property
owners
to
challenge
their
2016
property
values.
The
appeal
process
will
begin
Monday,
Feb. 1,
through
Monday,
Feb. 15
in Room
804 of
the
Coleman
A. Young
Municipal
Center,
2
Woodward
Ave.,
Detroit.
Tax
bills
will be
mailed
in June
and
payments
are due
by Aug.
31.
City
conducting
1st
citywide
reassessment
in more
than 50
years
This
citywide
reassessment
is just
the
first
step in
reforming
the
city’s
property
assessment
and
taxation
process,
Duggan
said.
For the
first
time in
50
years,
the city
is
conducting
a
citywide
reappraisal
of all
residential,
commercial
and
industrial
properties.
This
reappraisal
process
can help
bring
more
fairness
and
equity
to
property
values
and tax
rates.
Having
fair
property
tax
rates
can help
reduce
the risk
of
foreclosure,
Mayor
Duggan
said.
Results
of this
more
in-depth
study
won’t be
reflected
until
property
owners’
January
2017
assessment
notice
from the
city.
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