DETROIT (WWJ) – The State Senate has voted to lower the population threshold in Detroit so the city can continue collecting higher income and utility taxes.
Detroit could have a loss of nearly $100 million in annual revenue had state lawmakers refused to lower the population requirement needed to collect the higher income and utility taxes.
WWJ Lansing Bureau Chief Tim Skubick said this fills a huge hole in the Detroit budget, but says they were close votes in the legislature since a lot of out-state Republicans didn’t support them.
Skubick says Governor Rick Snyder is expected to sign the bills.
“This is good news for the city council , good news for the mayor . Now, they have to resolve their differences because the legislature has done its part.”
Detroit City Council President Pro Tem Gary Brown is pleased.
“We expected them to pass. We certainly need the money. I still believe that the revenue is overestimated that (Mayor Dave Bing) thinks he’s going to get, so that doesn’t change,” Brown said.
The State House approved the legislation last week. (More on this story, here).