Snyder signs Detroit tax and population bills
Gov. Rick Snyder has signed bills that will allow the city of Detroit to continue its income tax and utility user tax provisions.
Snyder signed the bills Thursday afternoon at a state office building in Detroit.
The main bill allows Detroit to continue a 2.5 percent city income tax rate on resident individuals, higher than allowed in other Michigan cities.
Changes in state law are necessary to continue the tax rates because of Detroit's declining population.
Census statistics show that Detroit's population fell to 713,777 last year. The decline puts Detroit in danger of losing allowances in state law reserved for cities with a population above 750,000.
The bills lower the population threshold to 600,000, so Detroit still qualifies for the tax provisions.