Income Tax & Property Tax Reduction

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On June 20, 2017, East Lansing City Council approved an ordinance adopting the State of Michigan Uniform City Income Tax Ordinance by reference and approved two resolutions (resolution 1 and resolution 2) to place a proposed income tax and property millage rollback on the November 7, 2017 General Election ballot. 

If the income tax ballot question is approved by voters, East Lansing residents would pay a 1% income tax (some income would be exempt) and non-residents would pay a 0.5% income tax. If a resident lives in East Lansing and works in another community with an income tax or works in East Lansing and lives in another community with an income tax, they would pay 0.5% to East Lansing and 0.5% to the community in which they work or live.

If the property millage rollback ballot question is approved by voters, the City Charter would be amended, permanently lowering the City's ability to levy property taxes, not to exceed 13 mills (currently 17.5679 mills and cannot exceed 20 mills) in any year in which an income tax is collected. This will result in a minimum reduction of 4.5679 mills; however, It is Council’s intent to levy less than that and reduce the actual amount levied by 5 mills to 12.5679 mills. The property tax reduction will minimize the impact of the estimated income tax paid by residents and, in some cases (i.e. retirees exempt from the income tax), decrease the overall amount of taxes paid. 

Why An Income Tax Was Proposed by Council

The City of East Lansing is facing significant, long-term budget challenges despite many steps taken over the years to cut costs. Learn more about the City’s financial challenges.

Ballot Language

View the ballot questions that will be on the November 7, 2017 General Election ballot.

Taxpayer Impact for Residents

Click on the graphic below to view a series of charts that illustrate the taxpayer impact for residents (if both ballot proposals pass) with exemptions (1-6) at $600 each* and a 5 mill reduction in property taxes. Residents can find the taxable value of their home here or on their tax bill.

Taxpayer Impact Charts (click below)

*Please note that the $600 for exemptions is an assumed amount. East Lansing City Council has yet to determine the amount for exemptions.

Taxpayer Impact Example

View a Taxpayer Impact Example that uses East Lansing's average gross household income ($67,926) and average taxable value for improved residential parcels (i.e. parcels with a dwelling) in 2017 ($83,500).