Cushingberry Improves Neighborhoods by Approving NEZ Certificates

By the Friends of Cushingberry

.

       Councilmember  Pro-Tem George Cushingberry Jr. is committed to neighborhoods and, has approved NEZ Certificates for the following properties in Detroit.

July 2015.

Address	# of Units
248 Mack Avenue	4
2658 Porter Street	3
3147 Woodward Ave	3
4335 Lakepointe	1
4119 and 4217 Aretha	2
4228 and 4240 Aretha	2
3926,3943,3955,4142 Aretha	4
11 units Woodward/Brush/Hendrie	11
81 Peterboro	3

What is a Neighborhood Enterprise Zone?

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 the tax on your Property Tax  as Assessed - BSA Software)

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.