When I purchased my house in Toledo last fall, the taxable value of my home was based on the purchase price. I pay about $1700 annually in taxes, and I purchased my home for 89K. Because of this system, many properties don't go to waste and rents are much more affordable as well. Until Detroit changes their asinine tax rates, many thousands of properties will go to waste and eventually be demolished with more taxpayer money. You can't squeeze blood from a stone.