The BIZ is funded by a special assessment that Downtown property owners voted to approve in April 2014. BIZ assessments are calculated using a formula, also approved by property owners, using the Assessed Value and Floor Area (i.e. –square feet) of property as described in City of Detroit records:
$0.003 per dollar of assessed value + $0.058 per square foot of floor area = Annual BIZ assessment
For example, a BIZ assessment for a property with an assessed value of $100,000 and a floor area of 8,000 square feet is calculated as follows:
Assessed Value Rate: ($100,000) x ($0.003) = $300
+ Floor Area Rate: (8,000) x ($0.058) = $464
Total BIZ assessment: $300 + $464 = $764
This formula has been approved for the 10-year life of the BIZ. The maximum BIZ assessment is $150,000 on any individual parcel of land.
Frequently Asked Questions
Will BIZ assessments change year after year?
The annual BIZ assessment on any parcel will change only if the City’s property data reflects a change in Assessed Value or Floor Area. Annual BIZ assessment increases are limited to a maximum of three percent each year except in cases of a sale of the property, new construction or substantial rehabilitation.
How do property owners pay the BIZ assessment and how does the money get to the BIZ?
BIZ assessment payments are collected with summer property tax payments. Property owners should pay the total amount due in a single check to the City of Detroit; there is no separate payment to the BIZ. The City collects assessments on behalf of the BIZ and disburses funds to the BIZ. BIZ assessments are included only on summer property tax bills.