How will 425 Agreements be impacted by the income tax?

425 agreements  will not generally be impacted by the income tax. The agreements all contemplate the possibility of an income tax and designate the residents as City residents for such a purpose and designate the tax revenues as belonging to the City. The millage proposed to be assessed along with the income tax will still be above the various millage amounts required to be given back to the Townships under the revenue sharing provisions. The Townships will still get their share pursuant to the agreements regardless of an income tax. 

Show All Answers

1. What is an income tax?
2. What other communities in Michigan have an income tax?
3. Will property taxes be reduced now that the income tax proposal has passed?
4. Will the City be able to raise property taxes again in the future?
5. Will my total taxes go up or down?
6. How much funding will be generated from the income tax?
7. When will the income tax and property tax reduction be implemented?
8. Could the income tax give City Council access to residents' tax returns/income information?
9. How will 425 Agreements be impacted by the income tax?