Tag Archives: property values

Are downtown properties underassessed?

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?