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Committee delays action on assessor audit and IAAO sales-ratio review to June after public concerns about overassessment
Summary
Committee members agreed to reconvene with the Office of the Assessor and the IAAO on June 4 to resolve conflicts and questions after public commenters and audit staff flagged discrepancies in the city's sales data and a separate forensic audit of assessments.
The Budget, Finance and Audit Standing Committee moved on May 14 to continue three related items — the City of Detroit sales verification analysis (2024 sales-ratio study), the Office of the Auditor General’s forensic audit of citywide residential property tax assessments (third interim report), and a memorandum regarding the IAAO officers study — to a June 4 meeting so all parties can attend and respond.
Why it matters: public commenters and committee members raised questions about the validity of data used to measure property assessments and whether past bond issuances followed required approvals. Those questions are central to property-tax fairness, foreclosures, and ongoing policy decisions.
Public comments and data concerns: Several public commenters urged further scrutiny of property assessments. BYU, a District 5 resident, said the IAAO study and the assessor’s office report used different sample sizes: the assessor’s office reportedly said it used 13,490 sales, while BYU said the IAAO report listed 12,498 sales. BYU also said the IAAO used only two sales in a specific Condo Zone C block where BYU said there had been more than 20 sales. Malik Shelton referenced findings in an Auditor General forensic audit of the assessor’s office and raised broader concerns about bond issuances (UTGO bonds) and whether required Council approvals were obtained for certain debt actions.
Officials’ response and next steps: The chair said the committee wants the Auditor General, the Office of the Assessor and the IAAO present to answer questions; committee members agreed to set the items for June 4. LPD staff confirmed the items will be brought back on that date. A public commentator, Tahira Ahmed, announced a press conference planned for Friday at 3 p.m. on the steps of the Main Library to discuss assessment and foreclosure concerns and said invited speakers included Professor Bernadette Atuahene and Ibram X. Kendi.
The committee did not take substantive votes on assessment remedies at the May 14 meeting; it moved the items to a later date to allow all technical parties to appear.
