East Lansing gives update on income tax revenue
Tuesday’s East Lansing City Council meeting will have an update on income tax revenue scheduled at 7:00 p.m. in Courtroom 2 of the East Lansing 54B District Court at 101 Linden St.
As of July 5, the city has collected $4.6 million in income tax revenue since it went into effect in January. This includes monthly and quarterly withholding from East Lansing employers and quarterly estimated payments from both individuals and businesses, according to a city press release.
Second quarter and June withholding payments continue to be collected.
Final collection numbers for the first year will be unknown until after 2019 income tax returns are filed next year. The city will refund some portion of that revenue to taxpayers, others will owe additional amounts.
The city said in a press release that they are currently on track to collect the budgeted $9 million in revenue projected for the income tax.
“These funds will help move East Lansing forward with much-needed reinvestment in public safety and infrastructure, while also helping us to safeguard the future financial sustainability of the City by addressing our long-term pension challenges,” East Lansing City Manager George Lahanas said in the press release.
Sixty percent of the income tax revenue will supplement pension payments, 20% will go toward police and fire protection and 20% will be invested in infrastructure improvements.
The city has already added two new police officers, two new firefighters and a new firetruck. Income tax revenue is also allocated to baseball field renovation at Patriarche Park.
Alongside the raise in income tax was a decrease in property tax. The city’s operating millage rate went from 17.5362 mills to 12.5362 mills, and this reduction stays in place as long as the income tax is in effect. Both tax policies are time-limited to 12 years.
Community members and employers are encouraged to contact East Lansing Income Tax Administrator DaMar Boyd at 517-319-6862 or email@example.com.