DETROIT – When home values go up, property taxes usually follow -- but right now in Detroit, the tax hit is only a fraction of what it could be.
Residential property assessments in Detroit are projected to increase by an average of 31% per neighborhood in 2021, according to Detroit officials. Detroit has started mailing out its annual notices of proposed assessment changes for 2022.
Even though property values in the city have increased, homeowners have been protected against large property tax increases.
Under state law, the annual increase in property taxes is capped at the consumer price index or 5%, whichever is lower, as long as ownership has not changed.
When a home is sold the cap is lifted and the taxable amount is adjusted the year following the transfer.
“This steady rise in property value is a reflection of ongoing improvements in neighborhoods such as blight removal, park improvements, commercial corridor upgrades and other key city services,” said Detroit Mayor Mike Duggan. “Home values in nearly every neighborhood are rising and helping to build new wealth, without significant tax increases. These numbers show that while there is still a lot of work to do, the city’s revitalization has reached nearly every corner of our city.”
Notices will be mailed out starting this week to the city’s residential, commercial, industrial and personal property owners to advise them of their proposed assessments for 2022. They are not tax bills. Tax bills will be mailed out at the end of June for summer taxes and in November for winter taxes.
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