The overall value of commercial property in Detroit rose $2.96 billion to more than $4.5 billion, according to data from the city assessor’s office.
Industrial property values made an 18 percent jump between 2017 and 2018, from $513 million to $629 million, according to the assessor’s office.
“I always thought that we would see double-digit increases,” Duggan said Tuesday. “But it’s one thing to think it should be happening and it’s another thing when the assessor walks into your office and shows you the map that it’s happening all across the city.”
However, because of state constitutional caps on property tax growth, residential property tax bills will rise by an average of just 1.02 percent this year, Duggan’s office said.
The same constitutional limits on taxation apply to commercial and industrial property tax bills as well when they get mailed to property owners in July.
The cap on taxable value is lifted when a home or other property is sold.
Growth in residential property value — fueled by 11,000 transactions in 2017 and 2018 — represents a $400 million increase citywide and follows a modest 5 percent increase in residential values between 2016 and 2017, city data shows.
The growing property values in Detroit are partly a result of a four-year citywide reassessment following Detroit’s 2013-14 bankruptcy that dramatically lowered the taxable value of residential, commercial and industrial property in Detroit.
Chad Livengood, Crain’s Detroit Business.