Commercial Property | City of Detroit

1. I no longer have a business in Detroit, so why am I still receiving tax bills?

To report a business closed, the taxpayer must file a discontinuance of business form. Forms are available at the Detroit Taxpayer Service Center (DTSC) in the Forms Library outside of suite 130. Taxpayers can also access the form via the links on the Office of the Assessor’s website (www.detroitmi.gov).

However, if your business was in the city of Detroit on December 31 you are liable for current property taxes.

2. If I purchase a Commercial/Industrial property in the City of Detroit, how much will my taxes be?

As far as the projected taxes, our aim as assessors is to value properties based on their highest and best use at a level that is typically seen for a given property type. The taxes, following a transfer of ownership, are based on 50% of the market value determination against which the millage rate is applied, a mill is 1/1000 of a dollar (approximately $88 commercial millage/$1,000 of Taxable Value).

50% of the market value becomes the assessed value and the taxable value. Your property taxes are based only on your taxable value, and they are computed by multiplying the taxable value of the property by the number of mills levied.

Michigan Department of Treasury Property Tax Estimator Website:
https://treas-secure.state.mi.us/ptestimator/ptestimator.asp

3. Can I change the zoning of my commercial property?

Yes, you must apply for a re-zoning with the City Planning Commission
https://detroitmi.gov/government/commissions/city-planning-commission/applying-rezoning

4. I just purchased a commercial property why have my taxes doubled?

Whenever you purchase a property in the state of Michigan due to Proposal A, once ownership is transferred, the property’s taxable value is uncapped and increases to the same level as the assessed value in the year following the sale, which limits the growth in property taxes to the rate of inflation or 5%, whichever is less, but only until ownership of the property is transferred. The formula under Proposal A ensures a property’s taxable value does not grow as fast as the property’s assessed value, which should be at or near 50% of market value.

However, by state law we cannot disregard the statutory transfer or ownership, we must uncap a property's taxable value in the year following the transfer of ownership of that property to reflect the current market value. Therefore, your payments will not be the same as the previous owner’s.

5. Why do I have three parcel numbers?

You have three parcel numbers because the property is receiving a tax abatement.

The Ad valorem parcel is the first parcel = Land value taxed at ad valorem rate.
The F parcel is the second parcel = Pre-rehab building portion of the TV which remains frozen for the duration of certificate, taxed at ad valorem rate.
The N parcel is the third parcel = Contributory value of the improvements made to the building.

Taxpayers can also access: https://www.michigan.gov/taxes/property/exemptions