DETROIT - Detroit Mayor Mike Duggan announced a tax break for property owners in 2016.
"For the third straight year the great majority of the homeowners in the city of Detroit will see a major reduction in their property tax assessment," Duggan said.
Duggan said two-thirds of all Detroit homeowners will see a 15-percent reduction.
"Most of the north part of the city will see 15 percent reduction," Duggan said. "The southwest and east side will see a 5 percent reduction and midtown and downtown will see 5 percent increase."
City leaders say because of the assessment reductions those who want to buy in the city of Detroit should act fast.
"It is very unlikely see assessment reductions like this next year," Duggan said. "We've seen a lot of increase in sale prices through 2015. The assessments are down because they go back to 2013 and I can tell you from the data we are receiving that we are headed in the other direction."
Duggan says many critics believed the assessment reductions would hurt city finances. But he says it is just the opposite
"In fiscal year 2014 we collected property taxes on 67 percent of residents," Duggan said. "We cut the assessments last year we collected on 72 percent. This year we are collecting at 78 percent. Our property tax revenues are running about $10 million ahead of budget."
But a reduction in property assessments can also lead to need for mortgages.
"When we drop the assessment 15 percent you have now raise the value of the house," Duggan said. "This should raise property values while we make the need for mortgages that more critical and I sure we will have a mortgage appraisal solution solved in two weeks."