Thursday, October 11, 2007

Renters and the proposed city income tax

According to the US Census, 67% of Ypsilanti's housing units are occupied by RENTERS (This number in Ann Arbor is 56%). That's a sizeable majority, no?

So when the city puts forth a plan to raise a levy on city residents and offers a tax cut for HOMEOWNERS to make it more palatable, that leaves the majority of Ypsilanti residents holding the bag. Renters get NOTHING out of this deal but a raise in income tax AND most likely a raise in their rent. Who proposed that only homeowners get such a break? Why not throw something in for renters, some kind of credit maybe?

Wanna know why? The city council proposing this aren't renters is the YCD guess. The city council really doesn't think the renters deserve much and they also think they're transient in nature so they won't be around for the next election.

Look, do your own research on this, look at the numbers and listen to both sides of this issue. Learn the good and the bad and make up your own mind but it sure looks to the YCD that there is ZERO benefit to renters to vote for any city income tax in it's current capacity.

10 comments:

glimmertwinfan said...

I can't speak as to the renters. But being an owner of anything in Ypsi is too expensive for what you get. Sorry to be the one to put the turd in the punch bowl, Johnny, but for my dollars Ypsi is not a wise investment.

Johnny Action Space Punk said...

No, that's cool. Everyone is free to be unedited here. Good or bad plus or minus, I want real people expressing real ideas and opinions.

I just really wanted to expose the difference in the planning in selling this tax increase (which I think is DOA) by giving one coveted voting block SOMETHING while giving another the backs of their hand because it appears they are less valued by those in elected office.

glimmertwinfan said...

My view is that anything that anyone can do to move the burden away from homeowners is positive.

But better management of taxpayer $ is the best solution. Not just for Ypsi, but for everywhere.

Johnny Action Space Punk said...

That's fair enough glimmertwinfan. Nothing wrong with that.

I just hope that if they can come up with some kind of appeasement for homeowners in selling this they COULD do something for renters who make up a majority of the city.

Anonymous said...

Nick here again,
When I used to live in Ypsi, I lived in Cornell Court apartments off Cornell Road. Even though I paid rent monthly, it could be considered on campus housing. So, my tax address would be my parents address, and would only be subjected to any taxes applicable to the city of Wayne.

Johnny Action Space Punk said...

Hey Nick--

I realize a lot of students have home addresses which would alleviate some of this BUT if the old Eastern Echo cuts you any kind of check (and they did when I worked there back when the world was in black and white), welcome to the club.

You DO raise a point about how many renters (in this case most likely students) have permanent addys not in Ypsi and who would avoid the tax.

I also read in the Courier that a lot of the lanlords would raise rents because of this increase as it would hit them too.

Anonymous said...

I agree with your concern about the impact of the city income tax on renters. I would not be against the city income tax were it not for the rollback.

Three members of the Blue Ribbon Committee, in the July 18, 2005
addendum to its final report agreed that:
"A roll-back of property taxes in conjunction with an income tax would result in an inequity in which poor individuals in Ypsilanti households pay a
greater percentage of their income to the City to maintain city services than wealthier households whose members would benefit from a millage reduction. This feature turns the proposed income tax/rollback into a regressive tax, i.e. a tax that takes a larger percentage from the income of low-income people than
from the income of high-income people."

Its funny how the mayor and the city manager never acknowledge this part of the Blue Ribbon Committee's report.

Steve Pierce, Ypsilanti, Michigan USA said...

Living on campus makes you a resident of the City of Ypsilanti and subject to the Income tax. Paying rent for an apartment, dorm, or home makes you a resident of the City of Ypsilanti both under State law as well as City Charter. So you would then be subject to the City Income Tax at the higher residential rate of 1% even if your job was outside the city. Even if your folks claim you as a dependent, your income while you live in Ypsi is subject to the Income Tax.

Another definition of residency is where you get your mail. So a cell phone bill, water or utility bill, even your pay stub, will all show City of Ypsilanti and thus you are a resident and will have to pay the City Income tax.

Cheers!

- Steve

Johnny Action Space Punk said...

Thanks Ingrid and Steve for your thoughts.

Ingrid you are right on about WHO pays the MOST (the poorest residents) and Steve thanks for explaining who is gonna pay---EVERYONE!

Your clarity is much appreciated

heelydavid said...

Thank you so much for taking the time for you personally to share such a nice info. I definitely enjoying every little bit of it. It is a great website and nice share.
__________________________
Delinquent Property Tax Coryell County