The Ypsilanti Courier
A Heritage Newspaper
Weekly Publication
Residents could see income tax on ballot
Council, residents brainstorm during visioning sessions
By Dan DuChene, Staff Writer
PUBLISHED: February 8, 2007
The ongoing debate over establishing an income tax in the city of Ypsilanti may culminate into a vote this year.
Advertisement
Ypsilanti City Council held three goal-setting sessions last month at Haab's Restaurant in downtown Ypsilanti.
"The idea of an income tax was the 800-pound gorilla in the room," said Council Member Brian Filipiak, D-3rd Ward.
He said he'd like to see the issue put before voters by November.
"It's the talk of the town," said Pete Murdock, a former Ypsilanti mayor.
Murdock, who served as mayor from 1982 to 1989, attended two of the three sessions held by council last month. He said the discussion of an income tax has put other discussions in the city on hold, such as labor negotiations.
The idea of an income tax, Murdock said, has been discussed for years by City Council. He said in 2004 and 2005 the city held town-hall meetings to talk about the issue. The discussion eventually made it to council's agenda in the summer of 2005, but, the issue was tabled.
State law limits a municipal income tax to 1 percent for residents. Under the law, cities may not tax non-resident workers any more than half of the tax residents pay. A resident tax of 1 percent would cap non-resident taxes at one-half percent. If residents paid a one-half percent tax, non-residents would pay one-quarter percent.
"It's really simple," said Council Member Brian Robb, D-3rd Ward.
Ballot language should be able to be considered by council as early as this month, Robb said.
At the goal-setting sessions, Ypsilanti City Manager Ed Koryzno was charged with gathering information on the issue to present to council. He said the issue could be brought to City Council this month.
Koryzno said he would not be putting together ballot language for council. "That's up to council," he said.
"There was confusion as to what the moving parts were," Koryzno said. He said he assigned an intern to gather information several weeks ago.
Variables to the income tax include the tax, the amount of an exemption, a property tax rollback and whether to establish a sunset to the tax.
Unlike Robb, Mayor Paul Schreiber said the issue is more complicated.
"There are a lot of variables, and we don't know what all of those variables are," Schreiber said.
Aside from variables in the actual tax, he said council has to consider when to put the issue on the ballot and when to have the tax take effect.
Filipiak said the timing of the election is important because voters may have to decide the future of a county-wide bus millage, a jail millage and perhaps an increase in the state income tax.
"That could get to be a very dicey ballot," he said.
This year, council could get ballot language together for one of three elections. The issue could be decided by voters in May, August or November. However, the language needs to be approved at least 70 days before the election.
Some want the issue put before voters as soon as possible.
"There's still time to put it on by May," Murdock said.
Filipiak said a vote on the tax by May wouldn't be very likely.
"We would have a very hard time getting our ducks in a row by then," Filipiak said. "I want all of the details spelled out before we do this."
Most council members said the vote should take place by November.
"I'd rather have it in August," said Mayor Pro-Tem Trudy Swanson, D-1st Ward. "We might as well go head-on and get it out there and get it over with."
Swanson said she not only wants the issue on the ballot, she supports the tax.
"There's a need for it, I'm in favor of it," Swanson said.
Schreiber also favors a tax.
"We have a deficit staring us in the face," Schreiber said. "Our revenues are not keeping pace.
"Right now, city hall and city services are hanging on by a shoe string. If we tug at that string any more, it's going to break," he said.
Filipiak said a sunset clause, setting the tax up as a temporary measure, would be something he'd consider.
"The voters have to be the ones to decide," Filipiak said. "The only thing we can do about it is decide whether or not to put it on the ballot."
Robb said he opposes the income tax, bot would support a tax on the ballot.
"I do not support the income tax in any form because of unintended consequences," he said.
"I'm all for nailing down a proposal," he said. "There is the outside chance that this thing could pass and I want it to be as fair as possible."
Murdock said an income tax wouldn't fix the city's financial situation completely, and could lead to the city depending on the income of residents and workers. He said the details of the tax will be better worked out as sides are chosen and campaigned for during and election.
Not all stories are guaranteed to appear
online. The Web edition contains a reasonable
sampling of the print edition stories.
For the most complete news coverage, we invite you to
subscribe
to the print edition of the paper.
TOP JOBS
