Detroit Tax Bills Signed

Two pieces of legislation necessary for the City of Detroit to continue levying income and utility taxes passed the Senate Tuesday and were signed into law by Michigan Governor Rick Snyder Thursday. House Bills 4623 and 4624 lower the threshold for cities to collect such taxes to 600,000. The changes were necessary as the former law allowed cities with a population of 750,000 or more to levy the taxes and Detroit’s population fell to 714,000 according to the 2010 census.

After narrowly passing the House last week, the two measures received no debate in the Senate following a discharge to the Senate floor. The income tax measure, HB 4623, passed 21-17 with 9 Republicans joining all 12 Democrats in voting “yes.” The Republicans were Senators Randy Richardville (R-Monroe), Darwin Booher (R-Evart), Bruce Caswell (R-Hillsdale), Dave Hildenbrand (R-Lowell), Roger Kahn (R-Saginaw), Mike Kowall (R-White Lake), Jim Marleau (R-Lake Orion), Arlan Meekhof (R-West Olive), and John Pappageorge (R-Troy).

The utility tax legislation, HB 4624, was passed on a similar vote – this time Senator Marleau voted “no.”

The City of Detroit’s 2011 – 2012 fiscal year budget, which begins July 1^st, assumed the tax collections would continue as passed by the City Council and the Mayor.

posted by PAA Online , Friday, June 10, 2011 11:10 AM
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