East Lansing considering adding income tax

EAST LANSING, Mich (WLNS) – The city of East Lansing could become the first Michigan city to add an income tax since 1994.

As the city examines it’s financial stability a new report shows an income tax could generate millions of dollars of revenue.

Whether you live or work, or even both, in East Lansing, instating an income tax could mean you pay up to 1-percent of your salary to the city.

A new report commissioned by East Lansing’s “Financial Health Review Team” shows an income tax could generate $10.4 million a year for the city.

This is how it breaks down.

The reports show residents would pay an estimated $5.3 million a year with an income tax.

Non-residents would account for $4.7 million and East Lansing businesses would pay just under half a million collectively.

That adds up to $10.4 million.

According to the report, after administrative costs, that leaves the city with about $10 million in revenue a year.

Now there are a lot of things still to consider with this report.

6 News spoke with the chair of the financial health team today.

Mike Moquin says this is just one of many options the team is looking at.

Others include assessing uncompensated services that the city currently provides to MSU and re-evaluating the city’s current benefits and pension packages for employees.

The financial review team isn’t set to officially make it’s recommendations to city council until December.

And if the income tax does end up an option considered Moquin says it would have to be put on the ballot and approved by voters before it ever takes affect.

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