The City of East Lansing’s income tax proposal has been approved by voters in the 2018 primary. WKAR’s Karel Vega has more.
Under the measure, East Lansing will impose an income tax rate of 1% for residents and 0.5% for non-residents who work in East Lansing. This was the city’s second attempt at an income tax proposal. The previous attempt failed last November. East Lansing Mayor Mark Meadows attributes the success to listening to what people wanted through polling.
“The results of those community conversations and the Epic/MRA poll that basically said this is what people would support." Meadows said. "So, obviously, the polling was correct.”
Meadows said more than half of the money raised by the income tax will go towards $200 million in unfunded retiree healthcare and pensions.
"We have a looming problem, which is the unfunded pension liability." Said Meadows. "This money, 60-percent of it will go directly towards reducing that unfunded liability."
The tax takes effect January 1st.
