Ann Arbor area residents weigh in on city income tax proposal
We asked local residents their thoughts on a new proposal for a city income tax that includes a 1-percent tax for city residents and 0.5-percent tax for non-residents - the highest amounts allowed under state law.
"I would be in favor of it if it would give us a little property tax relief, because a lot of people live outside of the city but they come into the city and spend a good portion of every day here and use our city services free of charge." • Pete Collins, Huron High School teacher and Ann Arbor resident "I'm all for it. The university doesn't pay taxes for a lot of properties now. We need to offset some of that capital and it seems like the easiest way to do it." • Patrick Gilles, AT&T sales consultant and Ann Arbor resident "I'd really rather not pay taxes, however, I do understand I'm using the roads and I'm using the facilities so it almost seems like it would be a fair thing to do." • Hazel Schroen, University of Michigan employee and Chelsea resident"It doesn't sound too good. More taxes is never good. We pay so much in property taxes, it's crazy. I own a home in Ann Arbor and our property taxes are enormous." • Angela Eddins, chocolate shop owner and Ann Arbor resident
"I think that's pretty ridiculous. I think it's a good way for them to generate some kind of income, but I think it's a pretty bad thing for all of us. Especially people who have higher paying jobs. One percent? Really?" • Joe Mikan, Potbelly's restaurant associate and Ann Arbor resident
"I was in downtown Detroit when that happened and everybody got out of downtown and moved to Southfield. Forget it. That's going to destroy this town." • Ron Barnett, barber shop owner and Ann Arbor resident
Comments
d_dilary
Tue, Jul 28, 2009 : 8:26 a.m.
This is my personal opinion, I live and work in AA - I pay tons of money in taxes and I think that non-AA residents should pay the 1% taxes. We already pay through the nose with taxes and even if we get a reduction of 15% our taxes currently can go up a maxim of 5% per year. So in a few years we will be back at the same point and we will still be paying the 1% penalty for living/working in AA.
JSA
Mon, Jul 27, 2009 : 12:06 p.m.
This is pressy much an issue for Ann Arbor residents and those that work in the city. If adopted this will be successful in getting money from U of M employees. I would caution you though that it is likely to drive other businesses out of Ann Arbor and to inhibit new start ups in Ann Arbor. I surely would not do so.
righta2
Mon, Jul 27, 2009 : 10:01 a.m.
hey neal, as a business owner I can look through my mailing list and see that my non a2 zip codes customers account for over half my repeat customers. The mailing list is updated several times a year, if someone doesn't use any mailings (coupons, good trackers) sent out during the year they get bumped from the list. My email list is even bigger (free cost to me) and I have A LOT of u of m emails on that list. It's pretty close to 50% townies and commuters. Heck, three of my BEST (big spenders) work at the U and commute. The U employees spend money in this town. I might not like that the U pays nothing in the way of property tax but if it weren't for them I wouldn't have a business either.
samshoe
Mon, Jul 27, 2009 : 9:29 a.m.
This is such a bad idea. Here are some other cities with city income taxes: Jackson, Port Huron, Detroit, Pontiac. Instead, why doesn't the city try to operate within a reasonable budget. I lived in or near the city of Ann Arbor for 15 years and I am amazed at how the city spends money. Wasteful! We are in the middle of a recession. We should be looking at ways to be more efficient - not tack on taxes to non-residents. It will just give good reason for my employer to look at leasing office space outside the city of Ann Arbor. Those of us that work in the city do contribute - we pay high parking fees, we go out to lunch at local restaurants, and we shop at local markets/stores.
Neal Foster
Mon, Jul 27, 2009 : 9:16 a.m.
In my previous post I should have used the word "property owners" instead of "residents," since so many AA residents rent their homes, apartments, or rooms. Their landlords pay the property taxes, of course. I have been a resident of the City of Ann Arbor for 32 years and have been a property owner for nearly 27 of those. While it is largely thanks to the U of M that AA is such a cosmopolitan and culturally enlightened place to live and retire in, to what extent is the U of M actually carrying its weight in terms of reimbursing the county and city for county and municipal services that it directly or indirectly uses? We need to see some actual data on this!
Neal Foster
Mon, Jul 27, 2009 : 9:01 a.m.
Many years ago I lived in a suburb of Philadelphia, PA, and commuted by train or car to my job in downtown Philly; the Philadelphia wage tax was deducted from every paycheck and that made a lot of sense in terms of fiscal sanity. I don't believe the folks who commute from Brighton, Saline, Pinckney, Chelsea, Dexter, etc. to work, say, at the U of M, realize the extent to which their use of Ann Arbor services is subsidized by Ann Arbor property owners. In fact, we need to see some actual data on the extent to which this economic parasitism of municipal services and perks by suburbanites exists. I also think that the only way that Ann Arbor City residents ever would vote in favor of an Ann Arbor income or wage tax would be if there was some commensurate offset or other relief in the amount of property taxes that we pay.
The Picker
Sun, Jul 26, 2009 : 8:34 p.m.
Taxes are already a tremendous burden on city residents. Add to this more record keeping and paperwork, the additional hard feelings created by more taxation, I think that politicians may want to ask themselves, Do I want to touch that third rail????
righta2
Sun, Jul 26, 2009 : 8:30 p.m.
any "decrease" in the property tax is just the bait part. the switch will come later when they create some new millage the try to pass and succeed in passing. the 1% and.5% allowed under michigan law could also increase, and if/when it does if this city tax is approved you can bet it will move on up to the limit allowed. a non resident wouldn't get to vote as to what their tax dollars would go for, that is taxation without representation. I for one don't want another tax period. As a small business owner I can not be taxed MORE.
kenUM
Sun, Jul 26, 2009 : 7:02 p.m.
This is a bad time for everyone, no city in the tri state area that I know of has not been using red ink and cutting services over the past year. Non resident employees and the University is not the reason Ann Arbor or the State of Michigan is hurting. As was pointed out by others, we spend money in Ann Arbor on Gasoline, Food, Shopping, and other items. Non residents donate to the WASHTENAW United Way, and many local charities in Ann Arbor. Personally I would rather pay my payroll tax to Ann Arbor as opposed to the city that I reside in, why? Because Ann Arbor has given me employment. I have been employed by the University of Michigan for the past 14 1/2 years, I have made many friends and consider A2 my home. I have and continue to support the various organizations in and around this city. I grow so tired of hearing the crying about how the University is to blame for all of Ann Arbor's ills and financial woes that I just shake my head! Consider for just a moment what would happen and what Ann Arbor wold be like without the University. Maybe the University should just annex the city and take over the School system, the bus system and the general day to day operations of the city, then you could reasonably blame the University for everything! If the payroll tax is passed then do we the non residents get a voice in how this city is run? Probably not
Jimaize
Sun, Jul 26, 2009 : 1:59 p.m.
I've worked in this city for over 30 years. If Ann Arbor decides to take this "pound of flesh" to fatten their coffers, I'll absolutely look outside the city when I want to spend my discretionary dollars, and would certainly look into employment elsewhere.
a2girl
Sun, Jul 26, 2009 : 11:13 a.m.
Thanks for pointing that out, KMJClark. I did not even see the other article until this morning. Last night when I logged on to our new paper this was the first article was the first think I saw....Sorry, Mr. Collins!
KJMClark
Sun, Jul 26, 2009 : 9:25 a.m.
People should read the accompanying article before commenting. The Ann Arbor Charter requires that the general operating millage disappear if we adopt a city income tax. That's about a 15% property tax cut, mandated by the city Charter. Charter changes require votes of the citizens. So it's people who think property taxes wouldn't go down that are having phony nightmares. We really should approve a city income tax, but I expect misinformation to drive the same no vote that we've had the past times we tried to pass an income tax.
Kashmier
Sun, Jul 26, 2009 : 9:07 a.m.
I have worked in Ann Arbor for 3 years now and I feel that I give to the community a lot. Not only do I put in my 40 hours a week but I am involved in the Ann Arbor community. I sweep the sidewalk, shovel the snow, pick up trash and work really hard for our business on Main Street. Not only that but I work even harder when thousands of out of town guests arrive for our festivals, fairs, and Ark Shows. I think I do my fair share of good for Ann Arbor...probably more then someone who lives here and doesn't do squat for the city. Why should I get more money taken out of my check when we can barely have a living wage as it is. Plus your out of town workers help drive your business cause we all shop, eat and socialize in Ann Arbor. Being charged money to work and help out the city is crazy to me.
resident
Sun, Jul 26, 2009 : 8:41 a.m.
For those who justify a new tax by saying it's about time that non residents pay for the roads and services they use when they come here. Consider this. You use the roads and services of every village, town, or city you use, whether in the state of Michigan or elsewhere. Should every one of those places also slap an income tax on their citizens to cover the cost of any visitors who might come there and spend money at restaurants, events (such as art fair or concerts), movies, groceries, etc...? Yea, maybe we should just put gates up at every entry point into town and charge a fee to enter, residents and non-residents alike.
HardWorker
Sun, Jul 26, 2009 : 7:35 a.m.
NO MORE TAXES! We already pay huge taxes (income, state, sales, property). We pay taxes for earning & then for spending the same dollar. If city budget is low, review the spending or go ask Michigan & the Nation for a bigger amount of high taxes we currently pay. One of the reasons for the US independence was the increasing taxes during the British colony. Two centuries later we're paying a bigger proportion than that. Collins "the teacher" ignores that outsiders benefit A2 residents who pay rent. If outsiders move to A2, renting an apt or room would just become more expensive and the city would get more crowded. Stop ranting at outsiders, they help the domestic economy. Comments like Collins' are contradictory when blaming the outsiders. Guess what? The proposal says "A2 residents will pay the double", then as an A2 resident he would end up paying more taxes than those that he himself criticizes. Furlough days & cops layoffs are the government's "strategies" to scare people and have them agree with more ridiculous taxes.
righta2
Sat, Jul 25, 2009 : 10:46 p.m.
Oh, (smacks self on head) why anyone thinks that this tax is a good thing for ann arbor? Why do people think more taxes in general are a good thing? 1. property taxes lowered? dreamer! additionally if they lowered them as a selling point they would just creep back up to what levels they know people will pay. 2. speaking of creep up. once you allow a new tax, that too will creep up at some point, so why hold the door open to let that pocket picker into your paycheck? 3. the comments above "we need to offset some of that capital" (regarding the Univ), yeah and those employees will have to pay a fee to work here, when it comes time to spend their money here they will be like screw A2 they got 40 bucks out of me this month, I will go to *Plymouth to eat out!....."I'd really rather not pay taxes, however, I do understand I'm using the roads and I'm using the facilities so it almost seems like it would be a fair thing to do." yeah, and anyone that drives through town uses the roads, thats part of doing business on the cities end of things....."It doesn't sound too good. More taxes is never good...yes, and you angela, are smart and I like you.... I think it's a good way for them to generate some kind of income, but I think it's a pretty bad thing for all of us....yes and you know, if you are a business and you raise your prices (as A2 would like to do by "taxing" us, than "customers" meaning businesses and residents, will go ELSEWHERE)...That's going to destroy this town." yes Ron, I agree with you too.... and funny how the two business owners profiled agreed, the mean looking white man and the minority woman and then me, the other one not profiled the white female business owner. I sees a pattern of smartnessness! since when does this government spend money wisely? why give them MORE money to spend like they have been? how is the city buying more land, which doesn't pay property tax going to help reduce property taxes? Is 1% of the new tax money also going to go for art? how about a monkey farm? how about offsetting the greenhouse gasses emitted from over inflated politicians egos? how about it go for new computers with webcams so city council can email during the meetings and also see each other on thier computer screens. Would the other 99% go towards advertising ann arbor as a great place to start a business? how about MOVE a business here with lots of JOBS? you know, b/c their is no way in hell some business with 1000 potential jobs will move here with this tax, no when they could go to one of the surrounding towns, and why would someone buy a house in a2 and not in one of the surrouding towns, how will this help sell homes? seems like it would HURT the housing market here. This mayor and council KEEP bringing this up. I cannot afford anymore taxes! I am a small business I cannot afford to lose customers due to this, and I also cannot afford to lose customers as a result of having to raise prices to cover this! These people need to be replaced. 4.
David A LaMoreaux
Sat, Jul 25, 2009 : 9:01 p.m.
I am in favor of a city income tax as it is about time that non residents pay to use our roads and other services. I don't think my taxes will increse as my property taxes will be reduxed.
Tom
Sat, Jul 25, 2009 : 8:41 p.m.
I am all for the tax, seems fair, people who benefit from working in Ann Arbor should pay their fair share. It it stops "Joe the Plumbers" of the world from starting their million dollar corporations in Ann Arbor then it is a price we will have to pay. There are plenty of other cities in Michigan where Joe can invest in.
a2girl
Sat, Jul 25, 2009 : 8:12 p.m.
I am frightened by Mr. Collin's comment that an income tax would give property tax payers a "little relief." If you think your going to get any kind of break, I think you are mistaken. I could be wrong, but I think it is naive to think that property owners will benefit from this plan.
Shark
Sat, Jul 25, 2009 : 5:16 p.m.
I believe this to bad idea for Ann Arbor. I live in A2 and work in Detroit. I have to pay 1.5% tax on my check for working in Detroit. I pay a tax that I have no voice in how my tax money is spent and I resent the city of Detroit for it. In my workplace there are several arguments by non-residents and residents about this tax. It has created a riff. Do we want non-residents speaking badly of our city? Would the city give a voice to the people who's money they are taking? Detroit does not and does not plan to. If I had a limited voice in Detroit then I would be happy. I have looked for other jobs, outside Detroit, and was willing to take a pay cut because I would make some of it back with not paying the tax. Does the city need to give people another reason to leave this area? I love this city, Ann Arbor, and do not want to give people a reason to talk badly about it. I understand and accept taxes as the price for living here but try and find a way not to hurt A2 image. Peace.
J
Sat, Jul 25, 2009 : 4:35 p.m.
This is just one more reason to NOT locate my business in Ann Arbor. There is already a problem with parking, and this just confirms that if you are not associated with the University for business, that it is a place to avoid in terms of location.
MotO
Sat, Jul 25, 2009 : 4:25 p.m.
Another bad idea from people trying to rip us off to pay for their inflated ideas.
Macabre Sunset
Sat, Jul 25, 2009 : 3:37 p.m.
Kind of a dumb idea. People are hurting. Increasing their taxes will decrease their spending. Which in turn will hurt Ann Arbor businesses. What Pete Collins, Ann Arbor "teacher", forgets is that outsiders who live in the town also spend money in the town, and those who employ them pay taxes within the town. Also, they use far less of the city's services. Have we forgotten how Brater's ill-advised policies sent so many businesses and so much tax revenue across the city line? Do we really want to erect yet another barrier for potential new businesses? Do we really want to deal yet another blow to the Ann Arbor real estate market, just when it's showing signs of stabilizing?