The Ypsilanti Courier
A Heritage Newspaper
Weekly Publication
City moving forward with income tax
Four plans unveiled to raise city’s revenue
PUBLISHED: May 3, 2007
Ypsilanti City Manager Ed Koryzno will be presenting four income tax proposals to City Council on May 15.
Advertisement
Three variable tax rates differ in each proposal. The income tax rate for residents and non-residents is different in each proposal, along with the idea of a property tax rollback. State law prevents a city from taxing residents above 1 percents. The law also keeps non-resident income taxes at a rate half of what city residents pay.
All proposals, except for the fourth, call for a $1,000 exemption from the tax.
Tax Proposal One
The first proposal sets the income tax rates at their maximum levels. Ypsilanti residents would pay a 1 percent tax while non-residents would pay .5 percent. The city’s property tax would be rolled back two mills under the plan.
Because of the property tax rollback, some residents could see a reduction in taxes. A resident who makes $10,000 annually and owns a $60,000 or $120,000 home could pay $4 to $14 less a month on taxes.
However, a non-city resident would who makes $40,000 a year would pay an additional $16 a month on taxes, while a city resident who makes the same amount of money and rents would pay $31 more a month on taxes.
Tax Proposal Two
The second plan sets the resident tax at .8 percent while non-residents would pay a .4 percent tax. There is no property tax rollback.
A city resident making $40,000 a year would have a $25 increase in taxes every month with the plan, while a non-city resident would pay $12 more a month.
Tax Proposal Three
The third plan sets the tax rates at their maximum, 1 percent for residents and .5 percent for non-residents, and rolls property tax back four mills.
Someone who makes $40,000 a year could still see a reduction in their taxes under this plan, if they owned a $120,000 home. A resident with a $60,000 home could see a reduction in their taxes if they made no more than $20,000 a year.
Tax Proposal Four
The final plan calls for the maximum level of tax rates and has no property tax roll back. However, there is a $3,000 exemption under the fourth plan.
Under this plan, with the $3,000 exemption, A resident making $40,000 annually would have a $26 increase in their taxes monthly. A non-city resident making the same amount of money would see a $13 increase.
Read more about this story in next Thursday’s edition of the Courier.
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
