If you live in one of these areas, you may
qualify for a tax abatement of up to %50 for 15 years. Since 2006, the City of
Detroit began a program offering tax relief to specific geographic areas. Many
residents have been interested in this program, but are unsure how to go about it.
Here are some frequently asked questions:
1: Who is eligible?
If you purchased your home after
January 1, 1997, it is your principal residence, and you have completed $500 of
improvements to your home since its purchase, you are likely eligible for a tax
cut. Two-family properties are also eligible if it is the owner's principal residence.
2: How much is the reduction?
The NEZ tax abatement adjusts the
rate of the City and County operating mills by 50%.* this millage rate varies
yearly - therefore the NEZ millage rate varies also. *Only the City and County
operating mills are abated - all other homestead mills are applicable.
3: How long does the tax
abatement last?
15 years.
4: How do I
apply?
You must apply in person at the
City Assessor's Office, which is located in the Coleman A. Young Municipal
Center, Two Woodward Avenue, Room 804, Detroit, MI 48226.
5: Is there a deadline?
Yes. If you want to see tax
relief for the next year, you must apply between the dates of April 1 – October
1. For example, if you recently purchased your home, you can apply between
April 1 and October 1 of the current year to be eligible for the upcoming tax
year. You do not have to reapply every year.
6: What documentation do I need
to bring?
You will need to bring your
driver's license and property deed.
7: My mortgage company pays my
taxes through my escrow account. Do I have to inform them of this change?
It is a wise idea to notify your
mortgage company of this program, once you have been approved, to transition
the change of escrow more smoothly. The first year, and every eligible year
thereafter, they will receive four tax bills: one for the land and one for the house
(improvements), each summer and winter. This is due to the land on which your house
sits is not eligible for this program, just the house itself. Under normal
conditions, they would only receive two tax bills: winter and summer. If your
mortgage company understand these bills, it may help avoid further mistakes
later on.
8: How will I know when my taxes
have been reduced?
You can log into the City of Detroit
Assessment Department's Online Property Tax Payment and Information System: (Click Here for Online Property Tax Payment)
There is no charge for this
system as long as you set up an account and verify only your own property.
Changes will be noted after the next tax billing cycle.
