Friday, July 10, 2009

Iron River Township money woes

Iron River Township is being financially squeezed
by the prison closure. However that does not afford
license to impose a new tax on the residents in
violation of the Headlee Amendment to the Michigan
Constitution. Here are some guidelines:

"There are three factors to consider when deciding
if a charge is a fee or a tax. Id. To be considered
a fee, a charge must: (1) serve a regulatory purpose
rather than a revenue-raising purpose, (2) be
proportionate to the necessary costs of the service,
and (3) be voluntary, in the sense that the payor may
choose not to avail himself of the benefit and thereby
avoid the charge.

MAPLEVIEW ESTATES, INC. v. CITY OF BROWN CITY, 2003.

It is clear to me that Iron River Township's proposed
revisions to the sewer ordinance, as reported, runs afoul
of case law as does Iron River's and the township's
"readiness to serve" charge in their water ordinance.

Bill Vajk

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