|
NEZ (Neighborhood Enterprise Zone) Tax Relief Program
Starting in 2006, the City of
Detroit began a program offering tax relief to East English Village
residents. 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?
After re-assessment, it can be up to 33% of your
annual tax bill.
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 by October 1. For example, if you recently
purchased your home, you can apply anytime until October 1, 2008 to be
eligible for the 2009 tax year. You do not have to re-apply 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:
http://www.detroitmi.gov/Departments/Finance/AssessmentDivision/tabid/88/Default.aspx 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.
9: How can I get more information?
You can contact the City of Detroit Assessor's
Office at 313-224-3011. Office hours are Monday-Friday, 8am - 4pm.
|