Politics
10:42 am
Thu June 9, 2011

Snyder to sign Detroit tax and population bills

DETROIT (AP) - Gov. Rick Snyder is preparing to sign bills that will allow the city of Detroit to continue its income tax and utility user tax provisions.

Snyder is scheduled to sign the bills Thursday.

The main bill would allow Detroit to continue a 2.5 percent city income tax rate on resident individuals, higher than allowed in other Michigan cities.

Changes in state law are necessary to continue the tax rates because of Detroit's declining population.

Census statistics show that Detroit's population fell to 713,777 last year. The decline puts Detroit in danger of losing allowances in state law reserved for cities with a population above 750,000.

The bills to be signed by Snyder would lower the population threshold to 600,000 so Detroit still qualifies for the tax provisions.