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Cities ask legislators to ensure non-residents pay taxes

Michigan Legislature
Posted at 11:25 AM, Nov 30, 2020
and last updated 2020-11-30 11:25:32-05

LANSING, Mich. (AP) — Michigan mayors are asking the Legislature to act quickly to ensure two-dozen cities collecting income taxes don't lose revenue because non-residents are working at home during the coronavirus pandemic.

Officials warn that without the approval of bills in December’s lame-duck session, the communities could lose up to $160 million in 2020.

The Michigan Municipal League also wants the Republican-led Senate and House to let public bodies meet virtually beyond Dec. 31 and tackle “unintended interactions” between a tax-limiting state constitutional amendment — known as Headlee — and Proposal 1, a 1994 overhaul of the state’s tax and school-finance systems.