Ypsi five year plan includes income tax

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.

5 Responses to Ypsi five year plan includes income tax

  1. I don’t think the township wants the city, though.

  2. I’ve been living in Pennsylvania for the past 3 years while in law school. The entire state has local income taxes, most of which carry a rate between 0.5 and 1.5%, so I’ve gotten used to having that little share taken out of my paychecks. You really don’t notice it, and it really helps the local governments stay solvent, so I’m not opposed to that becoming a regular thing in Michigan. There’s a convenient office here that does your local tax return for free in a matter of minutes, and that’s something that would need to be considered in Ypsi/other localities that adopt income taxes in order to make the whole ordeal virtually painless.

  3. If the City dissolved its charter the Township would have no choice in the matter.

    • You might be right, but I think the other possibility would be the city could be dissolved and converted into its own township. I could be wrong.

  4. BTW, I came across this on annarbor.com:

    http://www.annarbor.com/news/group-opposed-to-new-ypsilanti-tax-proposals-refuses-offer-for-public-debate/

    Basically, the “no new taxes” people don’t want to talk to the “we really need to do this thing” people.

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