A State Representative has a plan to increase the income tax rates that some Michigan cities charge, a move that could bring increased revenues into those communities.
Representative Andy Schor's plan is to lift the current state cap on city income tax rates.
Right now, there is a 1 percent limit on city residents and a .5 percent limit on everyone else, but four cities are allowed to collect more than those rates. Those cities are Detroit, Grand Rapids, Saginaw and Highland Park. Detroit levies a 2.5 percent tax for residents and a 1.25 percent tax for nonresidents. Grand Rapids is at 1.3 percent and 0.65 percent. Highland Park levies a 2 percent tax on residents and a 1 percent increase on non-residents. Saginaw's tax rates are at 1.5 percent and 0.75 percent.
With Flint being one of the cities that is bound by the current tax code, Mayor Dayne Walling says Flint could benefit from raised rates to the tune of $10 million a year.
"The income tax is much better in alignment with our economic development efforts," says Walling. "It recognizes the role and burden for the city of being a regional employment hub."
There are 21 cities in the state that charge a tax on those working and living in the city, including Detroit, Grand Rapids, Saginaw, Highland Park, Albion, Battle Creek, Big Rapids, Flint, Grayling, Hamtramck, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Springfield and Walker.
The legislation could take months to implement because Representative Schor hasn't signed the bill and needs to work with city officials about raising those income tax rates.
WNEM will continue to follow this story and provide updates as they become available.
Copyright 2013 WNEM (Meredith Corporation). All rights reserved.
Wednesday, June 19 2013 12:42 PM EDT2013-06-19 16:42:14 GMT
Authorities are looking for a missing elderly couple.Garnett Police Chief Kevin Pekarek said Vernon and Goldie Hunt left their home about 6:30 a.m. Monday for Dwight, IL. Vernon is 92 years old and GoldieMore >
Authorities say a missing elderly Kansas couple has been found safe in Michigan.More >
Wednesday, June 19 2013 9:28 AM EDT2013-06-19 13:28:10 GMT
One of Kansas City's most beloved barbecue joints went up in flames early Wednesday morning.Firefighters say the fire started at midnight at Gates Bar-B-Q near North 10th Street and State Avenue.when crewsMore >
One of Kansas City's most beloved barbecue joints went up in flames early Wednesday morning.More >
Wednesday, June 19 2013 1:34 PM EDT2013-06-19 17:34:16 GMT
Authorities are investigating after a person was shot in a car.Police responded to a shooting call at 11 a.m. Wednesday on Interstate 635 near State Avenue.The victims condition is not yet known at thisMore >
Authorities are investigating after a man was shot in a car on Interstate 635.More >
Wednesday, June 19 2013 5:45 AM EDT2013-06-19 09:45:09 GMT
A guerrilla gardener is on the loose in the Westport area, trying to beautify blighted areas once sat barren. Guerrilla gardeners grow plants, herbs and vegetables on public pieces of land that are inMore >
A blighted public area is now being called The Magic Garden after a woman decided to transform a neglected spot near the Westport post office.More >
Wednesday, June 19 2013 7:37 PM EDT2013-06-19 23:37:10 GMT
A Belton woman who sued Vatterott College over its enrollment practices has won a $13 million judgment against the college. Jennifer Kerr, 42, said the enrollment procedures caused her to spend thousandsMore >
A Belton woman who sued Vatterott College over its enrollment practices has won a $13 million judgment against the college.More >
Wednesday, June 19 2013 8:52 AM EDT2013-06-19 12:52:28 GMT
A central Ohio day care worker sprinkled drugs on snacks to get children in her day care to sleep during the day, according to police charges filed Monday that the woman adamantly denies as a misunderstoodMore >
A central Ohio day care worker sprinkled drugs on snacks to get children in her day care to sleep during the day, according to police charges filed Monday that the woman adamantly denies as a misunderstood joke.More >
Wednesday, June 19 2013 9:55 AM EDT2013-06-19 13:55:47 GMT
Former Kansas City Royals great Willie Wilson had to give up his World Series ring when he declared bankruptcy. Now his family, friends and fans are working to get it back. They're using Twitter andMore >
Former Kansas City Royals great Willie Wilson had to give up his World Series ring when he declared bankruptcy. Now his family, friends and fans are working to get it back.More >
Tuesday, June 18 2013 7:06 PM EDT2013-06-18 23:06:25 GMT
Gary Simpson admitted Tuesday that he so badly abused an infant last year that her skull was fractured.Simpson was a friend and live-in nanny to a Johnson County family. He repeatedly abused the then 2/12-month-oldMore >
Gary Simpson admitted Tuesday that he so badly abused an infant last year that her skull was fractured.More >