By Charles Sercombe
In an effort to spur home development and offer tax breaks to homeowners, the city council is on its way to creating three special tax zones.
Officially, the areas are called Neighborhood Enterprise Zones (NEZ), and it’s a program that has been offered nationally for many years.
These zones offer tax breaks on home additions, as well as for the construction of new homes. The tax breaks vary, according to a complex formula.
However, for those who live in an NEZ but take no steps to either improve their homes or build new ones, there is no tax break. In other words, you will continue to pay the same tax rate.
City officials are proposing three zones, two of which are in the southend. The locations for the proposed zones are as follows:
o The area bound by Caniff on the north, Yemans to the south, Nagel to the west and Brombach to the east.
o The area bound by Hewitt to the north, Denton to the south, Lumpkin to the west and Jos. Campau to the east.
o The area bound by Jacob to the north, Goodson to the south, Jos. Campau to the west and Gallagher to the east.
The proposal will take over a month to get finalized. Those who are in the designated zones who apply for a tax break for their additions or new housing have to first get approval by both the city and then the state.
City officials are proposing the tax breaks to last for 15 years. The proposal comes at a time when some homeowners here in Hamtramck have been complaining about huge increases in their property tax bills.
Some increases have, for example, gone from perhaps $2,000 a year to as much as $6,000 or more. But City Manager Max Garbarino said the jump in tax bills reflect significant home additions that have substantially raised property values.
Councilmember Khalil Refai is behind the NEZ proposal. He said his goal is to make Hamtramck affordable to live in.
“There are residents who are trying to stay in Hamtramck, but unfortunately our city is not showing support or helping these individuals to build houses in our city,” Refai said.
Posted May 10, 2024
Abdul Hadi
May 16, 2024 at 6:40 pm
Sorry for writing this here but i had no other place to put it. detroit soccer club is leaving hamtramck. Detroit city
fc is going to build a stadium in cork town. this is a grand opportunity to use the space to build luxury homes.