The Michigan Department of Treasury reports that liquor tax distributions to counties will decline to $49.88 million in fiscal 2016, from $73.75 million in fiscal 2015.
The 4 percent liquor tax that gets distributed to counties across the state is set to expire at the end of 2015. Back in 2008, the Legislature refinanced the Cobo Hall facility in Detroit and extended the liquor tax. As part of that package of bills, counties would still receive the liquor tax, but would be limited to receiving only that amount that was collected in their county. Currently the liquor taxes collected in Oakland, Macomb and Wayne counties are distributed to the rest of the counties. In essence, the liquor taxes collected in those three counties have subsidized the amounts to the rest of the state. In FY 2015, those 80 counties are receiving approximately 200 percent of the liquor taxes actually paid in their jurisdictions.
For FY16, Treasury says, “The 80 ‘out-state’ counties will receive 101 percent of the FY 15 liquor tax collections in their county. Macomb, Oakland, and Wayne share 101 percent of the FY 15 liquor tax collections in the three counties, which is estimated to be a slight increase compared to their estimated FY 15 distribution. Macomb and Oakland counties get a portion of the liquor taxes collected in Detroit.”
To see the county-by-county figures, click here.
The Michigan Department of Treasury reports that liquor tax distributions to counties will decline to $49.88 million in fiscal 2016, from $73.75 million in fiscal 2015.
The 4 percent liquor tax that gets distributed to counties across the state is set to expire at the end of 2015. Back in 2008, the Legislature refinanced the Cobo Hall facility in Detroit and extended the liquor tax. As part of that package of bills, counties would still receive the liquor tax, but would be limited to receiving only that amount that was collected in their county. Currently the liquor taxes collected in Oakland, Macomb and Wayne counties are distributed to the rest of the counties. In essence, the liquor taxes collected in those three counties have subsidized the amounts to the rest of the state. In FY 2015, those 80 counties are receiving approximately 200 percent of the liquor taxes actually paid in their jurisdictions.
For FY16, Treasury says, “The 80 ‘out-state’ counties will receive 101 percent of the FY 15 liquor tax collections in their county. Macomb, Oakland, and Wayne share 101 percent of the FY 15 liquor tax collections in the three counties, which is estimated to be a slight increase compared to their estimated FY 15 distribution. Macomb and Oakland counties get a portion of the liquor taxes collected in Detroit.”
To see the county-by-county figures, click here.
MAC still sees simple, direct election on 1-cent sales tax boost as best way to address roads crisis
The Michigan Association of Counties (MAC) reiterated today its longstanding support for a statewide vote to increase the sales tax by 1 penny, with all new funds generated dedicated to road work.
Jon Campbell, president of the MAC Board of Directors and an Allegan County commissioner, said in the wake of Tuesday’s defeat of Proposal 1:
“Voters in Michigan are telling public servants three things: They want more money for our crumbling roads. They want a direct, simple plan. They want to ensure new revenue is dedicated to roads.
“More than a year ago, the MAC Board of Directors decided the best plan for our state was a 1-penny increase in the sales tax dedicated to roads. We still see it as a simple, direct approach that raises the funds to address the crisis. And, based on the EPIC-MRA poll results released May 5, nearly two-thirds of voters would support it.
“Our membership, 622 county commissioners across the state, is eager to work with the Legislature and Gov. Rick Snyder to quickly and decisively handle this challenge.”
MAC committees on the environment and economic development are tackling some intriguing issues in their sessions on April 17.
The Economic Committee will be looking at the value of altering state law on hotel/motel taxes. The Citizens Research Council of Michigan has produced a handy one-page summary of what current law allows.
The Environmental Committee will hear from Krystle Sacavage of the Pennsylvania Public Utility Commission about that state’s regulations and “impact fees” on hydraulic fracturing, or “fracking.”
If you are a commissioner interested in serving on one of MAC’s committees (Environmental and Regulatory Affairs; Economic Development and Taxation; Judiciary and Public Safety; Health and Human Services; and Transportation) contact Casey Steffee at steffee@micounties.org for an application and more information.
LANSING, Mich. – County officials across Michigan are ready to work with majority Republicans in the Michigan House on key elements of their 2015 “Action Plan,” which was released today in Lansing.
The Michigan Association of Counties, which represents the 622 county commissioners across the state, sees fertile ground to nurture reform on several issues that counties deal with on a daily basis:
- Tax-capture reform: MAC is pleased that the House GOP noted that tax increment financing by municipalities “is leaving other levels of government collecting a fraction of what they otherwise would.” MAC has long worked at the State Capitol to bring fairness and collaboration to the tax-capture process.
- Road commission merger authority: MAC agrees with House Republicans that, “The provisions in law that allow county boards of commissioners to consolidate their road commissions under the umbrella of general county government must be reinstated.” That authority expired at the end of 2014 and it should be a top priority for the Legislature to act on restoration in 2015.
- Community mental health: “There is a continued need to further explore and evaluate policy and budgetary solutions to ensure that those with mental-health needs, and their loved ones, have access to quality and consistent care,” the plan states. Michigan counties know this all too well and will continue to educate policy-makers and the public on the nuances and demands of proper mental health services.
- Sentencing reform: MAC understands and supports the need to reduce the prison budget’s huge bite on state resources, but changes in sentencing must be made in such a way that county jails and county taxpayers are not left holding the bill.
- Veteran services: It’s vital to reverse the trends that have left Michigan near the bottom of national rankings on services to our veterans.
- Public notices: Laws to ensure transparency written with 19th century techniques in mind should and can be updated to protect the public interest while reducing the financial burden on county coffers.
“We are generally pleased with the course being charted by the House leadership,” said Deena Bosworth, MAC’s director of governmental affairs. “And we stand ready to hammer out the details to make these goals into policy. But that requires a balancing act by lawmakers. For example, it’s great for them to urge a focus on the long-term liabilities of local governments, but they can’t, at the same time, be looking to enact more property tax exemptions that drain the very funds that local governments need to cover their liabilities.”
###
For more information on MAC, go to www.micounties.org. Deena Bosworth is available to speak to the media on this topic. She can be reached at (800) 258-1152 or Bosworth@micounties.org.
Bosworth
MAC’s Deena Bosworth lays out the counties’ position on the need for tax-capture reform in this story from Port Huron on the workings of downtown development authorities in St. Clair County:
“These are unelected officials that are spending money on whatever they see fit … It should not be up to an unelected board to capture however much tax money they want and use it however they see fit.”
Tax-capture reform will be a priority for MAC in the 2015 legislative session. As always, please be sure to share with us your local experiences and input via email to melot@micounties.org. The more data and experience we can provide lawmakers, the more powerful our lobbying effort becomes.
For more background on tax-capture laws and MAC’s position them, review this briefing paper. (Please note you must be a registered member of the MAC website to access MAC briefing papers and other key documents. Be sure to register today at http://www.micounties.org/index.php/private-site/login?view=registration)
