East Lansing voters will decide whether to introduce a city income tax on Nov. 7.
Back in June 2017, the East Lansing City Council voted to put a measure on the ballot that would tax residents 1% of their income and non-residents who work in the city 0.5%. The proposal also includes a provision to lower East Lansing property taxes from roughly 17 mills to a new maximum of 13 mills.
As understood today, the income tax would generate $10 million in revenue. The city would then rebate roughly $5 million in property taxes, leaving a net revenue of $5 million for the city.
This proposal has been a point of great contention. There has been much negotiation between MSU and the City of East Lansing regarding the proposed income tax in hopes that the measure would not be presented on the November ballot. However, those negotiations were unsuccessful.
MSU was even willing to offer a maximum of $20 million in voluntary cash payments over several years to help offset the purported City of East Lansing financial challenges. Yet, the City was unwilling to accept MSU’s multiple proposals.
In addition to the impact of the income tax itself on individuals, some are expressing concern about the tax rebate portion of the proposal which is viewed as a tax give back to the wealthiest and largest property owners within the city limits.
The APA has received many phone calls and emails from members expressing their concerns and asking if our union is going to get formally involved. There is already a group that has formed called the Citizens for East Lansing’s Future to oppose the proposal and East Lansing City Council members have been knocking doors of East Lansing residents.
While the income tax would impact anyone living and/or working in East Lansing, the income tax proposal will be decided only by registered East Lansing voters on November 7, 2017. As always, we encourage every member to make their voice heard at the voting booth this November.