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Posted on Fri, Aug 14, 2009 : 4:02 p.m.

Chamber of Commerce survey reveals concerns with Ann Arbor city income tax proposal

By Ryan J. Stanton

The Ann Arbor Area Chamber of Commerce today released the results of a member-wide survey regarding the proposed Ann Arbor city income tax, showing 74 percent of respondents do not support the tax.

The measure, if enacted, would tax residents and businesses at a rate of 1 percent, and non-residents at a rate of 0.5 percent.

Of about 300 chamber members surveyed, 57 percent indicated that a city income tax would affect their decision to work at a place of employment in Ann Arbor; 62 percent indicated that such a tax would impact their decision to operate or expand their business in Ann Arbor.

Survey results mirror comments received by chamber staff at two roundtable discussions this week, at which attendees expressed apprehension, questioning the timing, wisdom and underlying assumptions of the proposed tax, chamber officials said.

“We felt it was critical for the business community to weigh in on such an important tax issue," John Petz, chair of the Chamber’s public policy committee, said in a written statement today. "We hope that City Council, despite delaying consideration of this matter, sees how critical this issue is to Chamber members and the vitality of Ann Arbor’s business community."

City Council members made it clear during a Thursday night working session that they're leaning against putting the proposal on the November ballot, but there's a chance it could come before voters in February or May.

Ryan Stanton covers government for Ann Arbor.com. He can be reached at (734) 623-2529 or ryanstanton@annarbor.com.