Miss-Delectable

City follows others' lead in exemptions push | thetimesherald.com | The Times Herald

Mayor Brian Moeller's idea isn't new: half of the cities in Michigan that collect local income taxes also provide exemptions for those who are senior citizens, blind, deaf or permanently disabled.

Edward Laratonda, Port Huron's income tax director, said his statistics show 11 of the 22 cities provide for all of the exemptions allowed by the state.

Others provide for only some. Big Rapids, for instance, is the only city that provides no extra exemptions.

Port Huron is moving to be the next to offer each exemption allowed under state law.

The City Council voted this week to have city administration draw up an ordinance that will extend exemptions to those who are deaf and permanently disabled -- an idea brought forth by Moeller. Port Huron already provides exemptions for those who are blind and 65 years or older.

Laratonda's research shows Battle Creek, Detroit, Flint, Hamtramck, Ionia, Lansing, Lapeer, Muskegon, Muskegon Heights, Portland and Springfield provide the full list of exemptions as allowed by state law.

Other cities, including Jackson, Pontiac and Walker, include some exemptions but not others.

Summer Minnick, director of state affairs for the Michigan Municipal League, said her group does not track certain exemptions.

But she said the talk of city income taxes is increasing in the state.

"Municipalities are looking to diversify their revenue sources," she said. "As property taxes have obviously been declining and state revenue sharing has been plummeting, there is some interest in communities where an income tax model makes more sense."

John Ogden, Port Huron's finance director, said it is difficult to determine how many people are deaf or disabled and how many of those people work in Port Huron.

But he said the cost to the city's coffers would be minimal. He said a $600 tax exemption would mean about $6 for city residents and $3 for non-city residents.

According to the 2008 American Community Survey from the United States Census Bureau, 5,322 Port Huron residents age 16 or older -- or about 22% of the city's population -- describe themselves as disabled.

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The survey "asked the respondents if they had a physical, mental, or emotional condition lasting six months or more that made it difficult working at a job or business."



Craig Thiel, the director of state affairs for the Citizens Research Council of Michigan, said state law dictates each municipality can determine which exemptions it wants to include.

"The law is permissive saying it is up to local communities," he said.

The council said of the 22 communities that collect income tax, Detroit collects the most at $288 million. Port Huron collected $6.68 million in 2007, according to the council.

Before it becomes city law, the City Council must approve two readings of the proposed ordinance at two council meetings.

Georgette "Gigi" Mericka, who lives in Port Huron Township but works in Port Huron, said the idea is "wonderful."

Mericka, who is disabled, said people may not understand the difficulty disabled people have just to get ready for work each day.

Furthermore, she said if people such as her weren't working, they would be at home, collecting checks from the government.

"They should be thankful that we are working," she said.

Mericka said statistics show a huge number of disabled people -- as many 86% -- don't work.

She said it is difficult to give up a steady check from Social Security.

"It is a scary thing," she said. "For me, I worked myself off of that. It is a scary thing to do."

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