Reappraisal FAQs | City of Detroit

What's the purpose of citywide reappaisal?

To bring the Assessment Roll into compliance with PA 206 of 1893 as amended, the General Property Tax Act. Specifically to ensure that all assessments are at one half of the market value and that assessment between like properties a uniformed ( similar house in similar neighborhood should have a similar assessment, all other things being equal). The reappraisal will also have the effect of cataloging the real estate of the City of Detroit, something that hasn't been done in decades.

Will my taxes incease because of the reappraisal?

For the vast majority of taxpayers the answer is NO.
State law prohibits the uncapping of taxable value due to a reappraisal unless a significant omission of the property record card was discovered. For example, a built in swimming pool, indoor heated sauna, etc. It would have to be very significant for the Board of Assessors to consider increasing the taxable value.

Why was an out of state vendor selected to perform the reappraisal and what role will city employees play going forward?

The City of Detroit’s Assessment Division had neither the manpower nor expertise to successfully complete a project of this magnitude. There are a few companies nationwide who can execute a reappraisal of this magnitude. Before the selection process, critique was established to determine what qualities the city needed a vendor to possess. Several companies in the State of Michigan were invited to bid on the project, and they all declined due to the cost and time associated with the project. In addition, an emergency manager had just been named to take over operations of the City of Detroit as well. Four candidates were selected from 7 bidders and two were selected for follow up interviews. Tyler Technologies of Moraine, OH was the preferred vendor. This was based in large part due to their work in New Orleans, LA after Hurricane Katrina and Miami Dade, FL.

Along with the reappraisal, a complete restructuring of the Office of the Assessor has occurred to ensure that an adequate number of staff are recruited and trained to maintain the Assessment Roll based on state law. We have increased the number of full time employees by nearly a quarter from 2013/2014 levels, we have hired staff certified trainers as part of our staff to ensure that new and previous employees attained the necessary certification levels to maintain the Assessment Roll. We have also invested in industry leading technology (aerial and street level imagery, upgraded GIS software, CAMA (computer assisted mass appraisal) Software, etc.) all with the aim of maintaining the Assessment Roll and setting the standard across the State of Michigan regarding a well-run, technologically driven, Assessor’s Office.

What role is the State of Michigan playing in the reappraisal?

In April 2014, the Finance Director for the City of Detroit and the Chair of the State Tax Commission signed a Corrective Action Plan to address the serious problems which were discovered in the operations of the Assessor’s Office and the administration of the Assessment Roll itself. The centerpiece of the Corrective Action Plan is the reappraisal. The State Tax Commission is the state body charged with oversight of all Assessing Jurisdictions in the State of Michigan. Failure to reach an agreement with the State Tax Commission to address the problems uncovered could have led to the seizing of the Assessment Roll. Keep in mind…..the Assessment Roll is the Tax Roll.

When will the reappraisal be complete?

The Residential portion of the reappraisal will be completed in March 2017 and the new values will reflect on the 2017 Summer Tax Bills. The Commercial and Industrial portion of the reappraisal will be done in March 2018 and will reflect on the 2018 Summer Tax Bills.

Will property owners have an opportunity to question and challenge the new assessments?

Yes. The Office of the Assessor intends to extend the Assessor Review to give property owners and opportunity to address any concerns they may have regarding the reappraisal.

Will that be the only opportunity for taxpayers to ask questions about the reappraisal?

No. The Office of the Assessors has started an informational campaign to inform the general public about the reappraisal and to address any questions and concerns. Staff from the Office of the Assessor will attend community group meetings, an informational brochure has been created and will be mailed out to property owners over the next several weeks, and a new webpage has been designed and will be unveiled over the next few days, all in an effort to reach out to property owners and to address any questions and concerns they may have regarding the reappraisal.