Do work in Detroit, office elsewhere, you could still owe taxes
Posted:
Updated:
By Alexis Wiley Fox 2 News
SOUTHFIELD, Mich. (WJBK) -- Detroit is launching a tax amnesty program encouraging individuals and companies that owe the city income taxes a chance to pay up without incurring additional fines.
It sounds great, but there is one piece of this program that's raising more than a few eyebrows because the city is not just going after its residents. They're targeting anyone who does business in the city, even if their company is based somewhere else.
For example, the driver who spends his day making deliveries in Detroit will have to pay up. The lawyer whose office is in Sterling Heights but tries cases in Detroit will also have to pay up. And reporters who spend time in the city covering stories like this one will also have to pay the piper.
So what does the mayor have to say about all of this? He wasn't willing to talk, but his finance director was.
"Actually, we should've been enforcing it all along," said Cheryl Johnson.
The non-resident tax is 1.2 percent and only applies to those who made more than $600 working in Detroit.
"If you spend approximately 75 percent of your time in Detroit and you live outside of the city, you would be required to pay tax of 75 percent of your earnings," Johnson explained.
Collecting those tax dollars is estimated to raise $4 million for the cash-strapped city, but is Detroit cutting off its nose despite its face?
"People say now wait a minute, if I go to work in Detroit I have to pay a tax. I'll take my business somewhere else or I will sort of avoid Detroit. That's what Detroit doesn't need right now," said Fox 2 legal analyst Charlie Langton.
"This has been on the books since the sixties, and we are enforcing it now and doing everything that we can to help bring more money into the city. As you know, we're in a cash crisis. If things that are on the books that we can actually do, we are going to aggressively do them," Johnson said.
The city's tax amnesty program will run from January 22 through February 16.
Thursday, May 16 2013 9:04 PM EDT2013-05-17 01:04:18 GMT
13 people were shot in Detroit in just 24 hours, five from one block, including a woman who was just hours away from a kidney transplant. She did not survive.
13 people were shot in Detroit in just 24 hours, five from one block, including a woman who was just hours away from a kidney transplant. She did not survive.
Thursday, May 16 2013 8:23 PM EDT2013-05-17 00:23:43 GMT
54-year-old Almeter Walls was set to have a transplant surgery on Thursday, but instead she is dead. We're told she was shot when a neighborhood argument ended in gunfire. The shooting also left four others wounded.
54-year-old Almeter Walls was set to have a transplant surgery on Thursday, but instead she is dead. We're told she was shot when a neighborhood argument ended in gunfire. The shooting also left four others wounded.
Wednesday, May 15 2013 9:01 PM EDT2013-05-16 01:01:40 GMT
Recess at Academy of the Americas in southwest Detroit is 20 minutes out of the day where all kids have to do is play, and that time is more valuable than you think.
Recess at Academy of the Americas in southwest Detroit is 20 minutes out of the day where all kids have to do is play, and that time is more valuable than you think.
Monday, May 20 2013 8:24 AM EDT2013-05-20 12:24:48 GMT
The Detroit Red Wings look to go up 2-1 in their second-round series tonight when they face the top-seeded Chicago Blackhawks at Joe Louis Arena. The Red Wings evened the series at 1-all with a 4-1 victory on Saturday.
The Detroit Red Wings look to go up 2-1 in their second-round series tonight when they face the top-seeded Chicago Blackhawks at Joe Louis Arena. The Red Wings evened the series at 1-all with a 4-1 victory on Saturday.
Monday, May 20 2013 7:06 AM EDT2013-05-20 11:06:04 GMT
An amber alert has been issued for Alonna Anderson, a three-year-old girl missing from Detroit. She was allegedly taken by her non-custodial father, Stacey Anderson.
An amber alert has been issued for Alonna Anderson, a three-year-old girl missing from Detroit. She was allegedly taken by her non-custodial father, Stacey Anderson.
Monday, May 20 2013 6:10 AM EDT2013-05-20 10:10:15 GMT
A trip to Subway turned into a nightmare for an elderly Berkley couple Friday afternoon in Commerce Township. Oakland County Sheriffs say a man left his 74-year-old wife in the car, while he ran inside
A trip to Subway turned into a nightmare for an elderly Berkley couple Friday afternoon in Commerce Township. Oakland County Sheriffs say a man left his 74-year-old wife in the car, while he ran inside
Sunday, May 19 2013 9:08 PM EDT2013-05-20 01:08:52 GMT
It's National Boating Safety Week - a good time to learn about new boating safety regulations. Macomb County Sheriff Anthony Wickersham talked with Fox 2 about what boaters need to know.
It's National Boating Safety Week - a good time to learn about new boating safety regulations. Macomb County Sheriff Anthony Wickersham talked with Fox 2 about what boaters need to know.
Sunday, May 19 2013 1:52 PM EDT2013-05-19 17:52:35 GMT
Authorities have identified a 20-year-old man they've arrested in the firebombing of the suburban Detroit home of an heir to the Art Van Furniture business.
Authorities have identified a 20-year-old man they've arrested in the firebombing of the suburban Detroit home of an heir to the Art Van Furniture business.
