Saturday, October 16, 2010

Iron River Township - Sewer Availability Fee

In recent times, Iron River Township began charging
a fee to all township properties where it appears
that there is a building within 200 feet of an
existing sewer. They have claimed that the authority
for this lies in state law. Please see MCL 333.12757

However, in the case Smith v. Township of Norton,
138 N.W.2d 522 (1965), the court held that:

"Anyone using the services of the township water
system by implication contracts to pay the rates
including charges, fees, and rentals. To charge
nonusers for services made available by its presence
without regard to whether any use is made of the
service or facility is in legal effect a tax and
can be effected only by complying with the statutory
requirements and not by creation of a charge within
the rate structure of the public service."

The facts are the same despite that in Iron River
Township's case the pipe holds sewage instead of
potable water. In short, in my layman's opinion,
Iron River Township must provide all the approvals
required for taxing those who own a building within
close proximity to an existing sewer and comply
with the mandates of the Hadlee Amendment to the
Michigan Constitution in order to charge them for
an "availability of sewer."

Bill Vajk

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