HomeMy WebLinkAboutResolutions - 1971.05.06 - 16176May 6, 1971
RESOLUTION NO.
RE: CONSTITUTIONAL REFERENDUM ON LOCAL GOVERNMENT SHARING OF STATE
INCOME TAX
BY: LEGISLATIVE COMMITTEE - MT. Pernick :
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRMAN, LADIES & GENTLEMEN:
WHEREAS the Legislature enacted a State fiscal package in 1967
which gave limited recognition to the fiscal problem's of counties,
cities, villages and townships by providing that 17% of the net
collection of the personal income would be returned to local units
on a per capita basis; and
WHEREAS, in recent sessions of the Legislature repeated efforts
have been made at a take-over of portiOns of this state-collected,
locally-shared tax as a means of solving the State's financial
problem without consideration of the serious impact on local govern-
ment services and programs; and
WHEREAS, the State reduced property tax credits during the
current year and eliminated the local government share of the
$92,000,000.00 in additional revenue; and
WHEREAS the Administration proposes to increase revenue from
property tax credit reductions netting .the State an additional
$104,000,000.00 in the next fiscal year in which local government
will not share; and
WHEREAS, the Administration proposes an increase in the rate
of the personal income tax rate and also proposes that local govern-
ment will not share in the additional revenue resulting from such
increase; and
WHEREAS, the Administration proposes to change the sharing
formula from 17% of net collections of, the personal income tax to
11.5% of gross collections which will ultimately reduce local govern-
ment's share of the tax substantially; and
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WHEREAS the State tax sharing program has been established to
provide a percentage allocation on the income tax revenues for
distribution to local units of government and this sharing concept
should be strengthened and protected so that a share more commensur-
ate with local needs is provided; and
WHEREAS, the recent efforts and proposals of the State indicate
a continuing effort to reduce local governments' share of this revenue
which can be accomplished by State Statute;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners supports a Constitutional amendment to provide that
25% of all income tax revenues be returned to local units of govern-
ment; and
BE IT FURTHER RESOLVED that the Chairman of the Board is author-
ized to initiate appropriate action to: place the said Constitutional
amendment on the ballot as soon as possible; and
BE IT FURTHER RESOLVED that the Chairman of the Board seek the
support and cooperation of Michigan's eighty-three counties, the
Michigan Association of Counties, other local units of government
and State Associations to insure the sUccess of this effort.
The Legislative.Committee,'by Mr.. Lawrence R. Pernick, Chairman,
moves the adoption of the foregoing resolution.
LEGISLATIVE COMMITTEE
Layfrence R. Pernick, Chairman
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Moved by Pernick supported by Lennon the resolution be adopted.
Discussion followed.
Moved by Brennan supported by Szabo the resolution be amended
by changing the paragraph starting with NOW THEREFORE BE IT RESOLVED,
to read as follows:
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners supports a Constitutional amendment to provide that
25% of all income tax revenues be returned to local units of
government and that a minimum of 50% of such revenues so distributed,
in excess of present levels, will be used to reduce local property
taxes and that the Oakland County Board of Commissioners also supports
a Constitutional amendment requiring a referendum vote on any increase
in the income tax rate.
Discussion followed.
Moved by Perinoff supported by Bawden that this Board table
any decision on both the amendment and resolution, pending the
attainment of a written amendment, for study by the members of
the Board.
AYES: Olson, Patnales, Perinoff, Richardson, Simson, Wilcox,
Bawden, Burley, Gabler, Harrison, Horton, Kasper, Mainland. (13)
NAYS: Pernick, Powell, Richards, Szabo, Aaron, Barakat,
Brennan, Coy, Daly, Edwards, Hamlin, Lennon, Mathews. (13)
A sufficient majority not having voted therefor, the motion lost.
Discussion followed.
Vote on amendment:
AYES: Powell, Szabo, Brennan, Coy, Daly, Gabler, Horton,
Kasper, Olson. (9)
NAYS: Patnales, Perinoff, Pernick, Richards, Richardson,
Simson, Wilcox, Aaron, Barakat, Bawden, Burley, Edwards,
Harrison, Lennon, Mainland, Mathews. (16)
A sufficient majority not having voted therefor, the amendment lost.
Vote on resolution:
AYES: Pernick, Powell, Richards, Simson, Wilcox, Aaron, Barakat,
Burley, Coy, Daly, Edwards, Gabler, Harrison, Kasper, Lennon,
Mainland, Mathews. (17)
NAYS: Perinoff, Richardson, Szabo, Bawden, Brennan, Horton,
Olson, Patnales. (8)
A sufficient majority having voted therefor, the resolution
was adopted.
STATE OF MICHIGAN)
(ss
COUNTY OF OAKLAND)
1, Lynn D. Allbn, Clerk of the County of Oakland and
having a seal, do hereby certify that.I have compared the annexed copy of
Resolution #5689 adopted by the Oakland Col.Aty Board of
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Commissioners at their May 6,.1971 meeting
with the original record thereof now remaining in my
office, and that it is a true and correct transcript
therefrom, and of the whole thereof.
in Testimony Whereof, I! have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan
7th May 71 this day of .....,.. ........ 19...
Lynn D. Allen Clerk
By Deputy Clerk