When Detroit homeowners receive their annual Notice of Property Assessment, due to be mailed next week, most will see a reduction in the assessed values of their homes. The reappraisals come after a review conducted by Chief Assessor Gary Evanko that showed most of the homes in the city were over assessed by 10 to 20 percent.
Accordingly, about three-quarters of the city will see reductions of 10-20 percent, and one-quarter of homeowners will see a reduction of five percent or less. However, homes located in 25 of Detroit’s most stable neighborhoods will not see a change in their assessments.
The appraisal reductions could lead to a reduced property tax bill for many Detroiters. Mayor Duggan expects about a 12 percent reduction in property tax revenue because of the reassessments, but the city hopes that a more realistic appraisal will increase the number of people paying their full property taxes.
The City of Detroit will mail assessment notices to every homeowner by the end of January, letting them know the results of the assessment. It is important to note that the notice is a proposed change and not a tax bill.
“For years homes across the city have been over assessed. 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 Mike Duggan
Residents who want to appeal the assessment may do so in room 804 of the Coleman A. Young Municipal Center, 2 Woodward Ave. Detroit, MI 48226. The City of Detroit Finance Department, Assessments Division will hold its annual Assessors Review appeal process from Monday, Feb. 2 through Monday, Feb. 16.
Reassessing residences is Detroit’s first step in its plan to conduct a citywide reappraisal of all properties – commercial, industrial, and residential. By performing such a thorough assessment, the city hopes to facilitate fairness in property values and tax rates, which can help reduce the risk of foreclosure.