Most Detroit homeowners to see property assessment reductions this summer

• Three-quarters of city to see reductions of 10-20%
• 25 stable neighborhoods will see no reduction

DETROIT - For the second 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. 2015 Assessment notices are being mailed next week and will start arriving in mailboxes soon.

According to the Mayor, approximately three-quarters of the city’s 220,000 residential properties will see a reduction of 10-20 percent of their property’s assessed value. Approximately one-quarter of homeowners will see a reduction five percent or less.

For many Detroiters, this could translate to a modest reduction in their annual property tax bill.

“For years homes across the city have been over assessed,” Mayor Duggan said. “If we are going to make Detroit a place that people will choose to live in, we have to make sure that our property assessments and our taxes are in alignment actual values, and we are doing that,” Mayor Duggan said.

The reassessment follows an exhaustive review conducted by Chief Assessor Gary Evanko and his staff of current assessments and actual home sales between October 1, 2013 and September 30, 2014. The data revealed, for example, that with the exception of some neighborhoods that have maintained their sales value, the majority of the city was still over assessed by 10% to 20%.

According to data from the Assessor’s office, property values in 25 of the city’s strongest neighborhoods, which make up about nine percent of the city’s residential properties, have stabilized to the extent that no corrections in property assessments are necessary (list attached).



Impact on Tax Revenue
Duggan said that the Plan of Adjustment already anticipates a reduction in property tax revenue of about 12% for 2014-2015 and the assessment reductions are in line with those estimates. The city is hoping that fairer assessment actually increase the number of people paying their property taxes.

“With many people seeing large reductions, we expect to see an increase in the number of homeowners who pay their full taxes,” Evanko said. “In the near term, we expect this move to keep fewer taxpaying residents to leave 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
By the end of January, the city will mail 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 Finance Department, Assessments Division will begin the annual Assessors Review appeal process, which allows property owners to challenge their 2014 property values. The appeal process will begin Saturday, February 1, 2014, through Saturday, February 15, 2014, in room 804 of the Coleman A. Young Municipal Center, 2 Woodward Ave. Detroit, MI 48226.

Tax bills will be mailed in June and payments are due by August 31st.

City conducting 1st citywide reassessment in 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 conducting a citywide reappraisal of all residential, commercial and industrial properties. In addition to street and aerial imagery of all properties (already completed), field staff are conducting on-site exterior inspections at approximately 22,000 residential structures and at every commercial and industrial structure over the next two years.

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.

25 Neighborhoods will have no assessment reduction

1. Arden Park
2. Berry Sub
3. Detroit Golf Club
4. Grandmont East
5. Grandmont West
6. Greenacre
7. Greenlawn
8. Indian Village
9. LaSalle Gardens
10. Outer Drive E
11. Palmer Woods
12. Rosedale South
13. Sherwood
14. Bagley
15. Eight Mile Evergreen
16. Berg Grand River
17. McNichols-Livernois
18. Meyers Outer Drive
19. Puritan Meyers
20. Midtown Brush Park
21. Woodward West Grand Blvd
22. Woodbridge
23. West Village
24. River Side
25. Boston Edison