New study claims Detroit is overvaluing some of the city's least valuable homes
(CBS DETROIT) - A study by the University of Chicago found Detroit is breaking the law by overvaluing some of the city's least valuable homes.
The study concluded after looking at Detroit's 2024 assessment role.
Michigan law states that cities cannot assess homes at more than 50% of their market value.
The University of Chicago study looked at Detroit's 2024 assessment role and found the city's assessor overvalued 72% of homes that are worth less than $34,000.
Alvin Horhn, Detroit's Deputy CFO/Assessor, says the study is false.
"The author has said that this study was not prepared and based on Michigan law," said Horhn. "He's made it quite clear that this study is a global look at bias in assessments across the United States. That's an admirable goal. But you can't take a study, which the author has said isn't based on Michigan law, and use that study to say that we're breaking this law. To me, that's ridiculous."
Horhn said the study is based on a global look at bias in assessments across the U.S. and not Michigan law, adding that the information is "utter nonsense."
The Michigan Tax Commission and the Wayne County Equalization Department have rejected the professor's claims in the study.
The city of Detroit admits that from 2010 to 2016, the city overtaxed homeowners by around $600 million, but the city has said there's no viable way to repay homeowners that money.
Horhn said the University of Chicago got this study wrong.
"It is straight," said Horhn. We are compliant with Michigan law; everything that needs to be done is being done.
The office of Detroit's city financial officer added that it spent millions modernizing the process, and new assessments have been reviewed and approved by the state tax commission.
Horhn said the problems of a decade ago were resolved, and for any individual property owner who feels their proposed assessment may be incorrect, the office encourages them to file an appeal.
