neighborhood enterprise zone homestead exemption

The entire Boston-Edison Historic District (along with nearby Atkinson) has been designated a Neighborhood Enterprise Zone (NEZ) Homestead area. Under the Neighborhood Enterprise Zone plan, residents who have moved into the Boston-Edison Historic District after December 31, 1997, may be eligible for a Homestead Exemption which will reduce property taxes up to 35%. (For a quick primer on property taxes, see this page on assessments and taxes.)

Applying for the Exemption

If you've moved into the Boston-Edison neighborhood recently and want to obtain this credit, you must apply for the exemption, and are required to sign an affidavit stating you plan to make a minimum investment of $500 in the property after the date of issue.

To receive this exemption, you must:

  • Complete the application/affidavit form (the pdf application form is available from the state of Michigan).
  • Have the property deed for the Boston-Edison property.
  • Have a driver's license or other picture ID showing the deeded property address.
  • Submit the application/affidavit form in person, with deed and ID, to the City of Detroit Assessor's Office, at:
         Coleman A Young Municipal Center
         2 Woodward Ave,
         Suite 804 (eighth floor)
    Office hours are Monday through Friday, 8:30 am to 4:30 pm.

You must apply between April 1 and October 1 to receive tax relief for the following year. Exemption affidavits received later will be processed for later tax years. At the City of Detroit Assessor's Office, be prepared to discuss the condition and functionality of the home.

For more information, read this web page from the city of Detroit, or contact the City of Detroit Assessor's Office, Special Processing at (313) 224-3035.

What happens next

Once your NEZ Homestead application is approved, the reduction in property taxes begins the following year. At that time, the millage rate applied to your house will be reduced, resulting in a lower tax bill. However, the NEZ homestead exemption applies only to taxes on a house, and not the underlying land. Because of this, homeowners with an NEZ homestead exemption will receive two tax bills at two different millage rates: one for the house (with the exemption) and one for the land (without the exemption). However, the actual value of the land is usually less than 10% of the value of the house, so the NEZ homestead exemption will reduce the millage rate applied to most of your tax bill.

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