While I was looking at some property information on Main Street, I noticed a disparity between the assessed value of the property and what actual sales have been. Here are the properties adjacent to the Pere Marquette on Main:
| Property ID | Address | Assessed Value | 2007 Taxes |
|---|---|---|---|
| 1809206011 | 533 Main | $14,280.00 | $1,174.82 |
| 1809206012 | 531 Main | $178,700.00 | $14,701.58 |
| 1809206013 | 527-529 Main | $87,580.00 | $7,205.18 |
| 1809206014 | 519 Main | $58,780.00 | $4,835.82 |
| TOTAL | $339,340.00 | $27,917.40 | |
That gives those properties, according to the tax assessor, a fair market value of $1,018,020 (i.e., three times the assessed value). However, also according to the assessor, these four properties were sold for $1.05 million in 1997, and $1.5 million in 2004. So the current assessed value is lower than the properties were worth over 10 years ago, and a half-million dollars lower than they were worth four years ago. Underassessment means lost revenue to the city as well as the county.
Are we talking about a lot of money in lost tax receipts here? Maybe not one year from just these four properties (although every little bit helps when the city is looking at a $2.2 million deficit). But over time, it adds up.
And what if this isn’t an anomaly? What if other downtown properties are underassessed? I think it’s worth investigating, especially with the city in need of extra money and contemplating raising taxes and fees. Why shouldn’t downtown property holders pay their fair share?