Legality Of Local Reimbursement Levy - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Legality Of Local Reimbursement Levy

LANSING, Mich. (AP) - Michigan cities say they want to make sure of the legality of a levy that would help them replace revenue lost from a cut in business taxes.

A law signed late last year gradually phases out hundreds of millions in taxes that Michigan businesses annually pay on equipment. The plan is dependent on voter approval in 2014.

Local governments could be reimbursed 100 percent of lost revenue that's spent on police, fire, jail and ambulance services. Local officials said this week they're worried that the assessment on businesses to make up for lost funding may not be legal because such levies typically pay for specific projects like street repairs - not general police spending.

The Michigan Municipal League says it's working with the Snyder administration and others on the issue.

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