Can our general law village become a fifth class city? If it becomes a city will the residents have to continue paying township property taxes?
The Home Rule Cities Act states “any incorporated village having a population of more than 750 and less than 2,000 inhabitants. . . may incorporate under the provisions of this act as cities of the fifth class.” If your village is also the county seat, it may incorporate as a fifth class city regardless of population and if it lies in two townships, the minimum population is 600. (Section 7, PA 279 of 1909, as amended, MCL 117.7) Basically, a village remains part of the township with the villagers participating in township affairs and paying township taxes (in addition to their own village taxes). Incorporation as a city, however, removes an area from township government and from the township’s tax rolls. The new city must assess its own property, collect taxes for itself, the county and the school districts, and administer city, county, state and national elections. Impact of Changing from a Village to a City discusses all the issues involved.
Related Questions
- What services are received for the assessment and why is there a special assessment when residents already pay property taxes? What are property taxes paying for?
- Why are residents paying ad valorem taxes for both the County and the City and also being assessed a fire fee?
- Why would Village taxpayers receive a larger reduction in property taxes compared to City taxpayers?
