Thursday, January 23, 2020

Detroit offers help for residents who can't pay their property taxes

Mayor Mike Duggan of Detroit joined other community leaders yesterday in announcing help for low-income residents who are having problems paying their property taxes. The full video from this event is embedded above this post.

Homeowners in Detroit who cannot pay their property taxes for financial reasons may be able to reduce - or even eliminate - their current year’s property tax obligation through what is called the Homeowners Property Tax Assistance Program. Those applying to this program must meet certain financial requirements. This includes both the family’s household income as well as their total assets.

Depending on one’s income, Detroiters may qualify to be exempt from 25%, 50% or even 100% of the normal property taxes on their home. The income guidelines for 2020 are listed below.

2020 Income Guidelines for the Homeowners Property Tax Assistance Program

Number in   Maximum Income for    Maximum Income for      Maximum Income for   
Household   Full (100%) Exemption Partial (50%) Exemption  Partial (25%) Exemption
1               $17,236                   $19,859                     $22,357
2               $20,799                   $23,336                     $25,703
3               $23.036                   $25,596                     $27,942
4               $26,780                   $29,355                     $31,930
5               $30,170                   $32,885                     $35,299
6               $34,590                   $37,357                     $39,799
7               $39,010                   $41,741                     $44,081
8               $43,430                   $46,036                     $48,642

One should add $4,320 to the income limit for each household member above eight for a full exemption.  For a 50% partial exemption, add $4,580 to the income limit for each household member above eight.  For a 25% partial exemption, add $4,950 to the income for each household member above eight.

In addition, the total household assets shall not exceed $12,000 This includes other real estate, boats, campers, stocks, bonds, and individual retirement accounts as well as other assets in or out of the United States. Verification of additional assets will be done for all parties and household members applying for property tax assistance. Information not provided by the applicant but is discovered by the Board of Review may cause your application to be denied.  If you have assets totaling more than $12,000.00, explain your special circumstances and why your application should be approved despite your assets.

In addition, this assistance is only available for owner-occupied primary residences. Renters and anyone who owns more than one home are not eligible for this assistance program.

Residents who apply before March 21 and are approved will have their tax exemption applied to their summer tax bills. The City of Detroit will continue to accept applications, however, until December 14.

Residents interested in applying for the Homeowners Property Tax Assistance Program should start the application process today by clicking this link.

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