Meadows Speaks to MSU Faculty on Income Tax

By invitation of MSU’s University Council, late yesterday afternoon Mayor Mark Meadows presented details on the CIty of East Lansing’s financial situation and forthcoming income tax to MSU faculty representatives, seeking to answer questions they might have.

Meadows had been on campus earlier in the day talking with MSU administrators about the implications of the income tax. When asked by ELi if he had presented this information to MSU faculty before the vote on the tax, Meadows said he had never before been invited to present. According to Meadows, this had been the first time in “twenty-some years” he had been invited to address the MSU faculty.

The Mayor’s presentation time at University Council was cut short and no time was allowed for formal discussion. (To see the slides of Meadows' presentation, click here.) The University Council meeting had been delayed early on by complications implementing a new electronic voting system that caused a single vote to take a substantial amount of time. Meadow’s slot, last on the agenda, also came directly after four candidates for the MSU Board of Trustees were each given time to introduce themselves and answer audience questions.

Asked by ELi for comment following what he could deliver of his presentation, Meadows said he was surprised to have not been able to give his full presentation. He said he understands he was invited because “the feeling was, the faculty might have questions . . . about how this would be implemented” and he wanted to make sure they were given information on how the City came to conclude it needed to ask voters for an income tax.

Meadows told ELi that others have felt more comfortable with the tax after learning more about its details. He stressed that he and the East Lansing City Council were open to answering any questions the MSU faculty might have about the income tax.

Meadows noted both during his presentation and afterwards in his comments that community information sessions will take place in November and December to answer questions businesses and residents have about how the income tax will affect them. Some type of “FAQ” document will also be developed.

As ELi has reported, Council has authorized the City manager to hire Innovation Software Services, Inc., to manage the income tax. By State law, the City must still designate an employee to be the “Income Tax Administrator,” despite hiring an outside firm.

When asked by ELi yesterday if this employee had been chosen, Meadows stated that one has been identified but he was not sure if they have accepted the position. He said this will be a part-time City employee position, and that the person hired will have specialist tax knowledge and be available to serve as a resource to the public.

Starting January 1, East Lansing will see an income tax rate of 1% for residents and 0.5% for non-resident earnings in East Lansing. The tax is limited to 12 years and its implementation will trigger a simultaneous reduction in East Lansing property taxes of about 10%, by voter approval.

To see Meadow's slide presentation click here.