This is a little off-topic for EMUTalk, but since there are lots of readers here who live in Ypsilanti and that many more that make money in Ypsilanti (e.g., EMU), I thought I’d share this post from markmaynard.com, “State of the City of Ypsilanti– the Five Year Plan.” This is the part that I thought be of most interest:
In February of this year, Ypsilanti city council passed a bold five-year budget plan. The plan calls for preserving police, fire, and support services by replacing lost property tax revenue with a city income tax and a Water Street debt millage. Both proposals will be placed on the May 8 ballot for voter approval. The proposed city income tax is 1 percent for working Ypsilanti residents and ½ percent for nonresidents who work in the city. According to the independent City Income Tax Feasibility Analysis commissioned by City Council, the city income tax would raise $1.3 million from city residents and $1.5 million from nonresidents who work at Eastern Michigan University and other businesses in the city. Virtually every city income tax dollar paid by a city resident will be matched dollar-for-dollar by non-resident workers who also rely on city police, fire, and other services. Since the general fund property tax rate is already at the state constitutional maximum of 20 mills, a city income tax is the only other significant revenue source available to the city.
For what its worth, I live in Ypsi and I support a local income tax mainly because I don’t think the town has a lot of other options. Well, other than just dissolve and become part of the township.