State lawmakers: Detroit can keep taxing at current rates

Jun 7, 2011

Because of the recent U.S. Census showing significant population loss in Detroit (the city went from 951,270 people in 2000, to 713,777 in 2010), Detroit was at risk for losing tax revenue.

Current state law says a city must have a population of at least 750,000 people in order to tax at certain rates.

State legislators have been working to change that number to help Detroit. A law lowering the threshold to 600,000 passed the State House last week, now it's passed the State Senate.

From the Associated Press:

Michigan lawmakers are approving measures that would allow the city of Detroit to continue its 2.5 percent city income tax on resident individuals and a separate utility users' tax.

Bills allowing continuation of the taxes were approved Tuesday by the Senate on 21-17 and 20-18 votes. The House already has approved the measures so they should soon be sent to Gov. Rick Snyder.

State Senator Bert Johnson (D - Detroit) told MPRN's Laura Weber that 600,000 is a safe and low-enough number, "You know, I think Detroit’s days of really hemorrhaging people are probably behind us," said Johnson. "We'll lose a few more along the way, but not in the significant numbers that we've seen over the past decade."