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On this page you'll find all of our stories on the city of Detroit.Suggest a story here and follow our podcast here.

Report: Detroit could lose $8.5M in income tax

Ifmuth
/
Flickr

A published report says state law requires the cash-strapped city of Detroit to cut its income tax rates starting July 1 unless the Legislature steps in.

The Detroit Free Press reportsWednesday the requirement is from a 1998 law that was part of a deal to preserve a state revenue-sharing payment and would total about $8.5 million.

The newspaper cited an analysis from the nonpartisan Citizens Research Council of Michigan.

Detroit sought a waiver from a state administrative board in December but was denied. Mayor Dave Bing says he will seek legislative help again because the city needs to keep "every
dollar" it can get.

A state-appointed review team is working to determine whether a financial emergency exists in Detroit, a step that could lead to an emergency manager.

The Associated Press is an independent global news organization dedicated to factual reporting.