The Downtown Detroit Business Improvement Zone Board of Directors (BIZ Board) is a public body that complies with Michigan’s BIZ law, 1961 PA 120, MCL 125.990 to 125.990n, as amended, and follows the City of Detroit’s process for BIZ assessment collection. We share the essentials about the BIZ budget, BIZ Plan and City process for you here.
On April 15, 2014, property owners approved a BIZ Plan that dictates BIZ projects a formula for BIZ assessment calculations. The BIZ charges the BIZ Board of Directors, a volunteer group of Downtown leaders, with the responsibility of creating a budget that aligns with BIZ service delivery goals and needs. The BIZ plan is valid for ten years.
BIZ assessments are calculated using a formula approved by property owners using assessed value and floor area 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 = 2014
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.
Will my BIZ assessment increase?
Annual BIZ assessments cannot increase by more than 3% except in the cases of new construction, substantial rehabilitation or a transfer of ownership.
How do property owners pay the BIZ assessment and how does the money get to the BIZ?
BIZ assessment payments are collected with property tax payments. Property owners should pay the total amount due in a single check; 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.