Has there been a property tax adjustment in Detroit

[lincoln8740]

The other thing, which I am sure you are well aware of, is that commercial and multi-family properties are assessed completely differently from single-family homes and comparables carry much less weight because they can look at the income stream and value it as an investment. I assume anything allegedly worth $600,000 in the Cass Corridor area is in that category.

I share in the old school thinking that the assessment should be based solely on the land and the actual building and not the revenue activity that occurs inside the structure. I know city assessors have tried to change that line of thinking but it still holds some water at the State Tax Commission

[mwilbert]

I share in the old school thinking that the assessment should be based solely on the land and the actual building and not the revenue activity that occurs inside the structure.

If by "revenue activity" you mean the revenue of the businesses in a building, I probably agree with you as long as the revenue is at arm's length from the owner of the structure. But that leaves the question of how to value the land and building.

It seems to me that rental income is a pretty important factor, and it is certainly used in commercial property assessment around the country. On the other hand, you can't really just use comparables because it is so hard to get good ones for commercial property. If the comps exist, of course they should be used.

[lincoln8740]

If by "revenue activity" you mean the revenue of the businesses in a building, I probably agree with you as long as the revenue is at arm's length from the owner of the structure. But that leaves the question of how to value the land and building.

It seems to me that rental income is a pretty important factor, and it is certainly used in commercial property assessment around the country. On the other hand, you can't really just use comparables because it is so hard to get good ones for commercial property. If the comps exist, of course they should be used.

I know this is becoming a thread for two people but as far as the whole "arms length" thing goes---let's say you appeal the taxes when your apartment building is virtually empty and you lock in your taxes at that point--how could the city uncap it? If I go from 10 percent occupancy to a 100 percent wouldn't I still be locked in at the 10 percent revenue value?