LANSING – Breaking from its hard line against anything resembling a tax increase, the Republican-controlled Senate on Wednesday approved bills that would allow voters in the Detroit area to decide whether to establish a new property tax to fund the Detroit Institute of Arts and increase the existing levy for the Detroit Zoo.
The Senate’s surprising move on the measures (SB 1578 , SB 1579 ), first reported in Tuesday’s edition of Gongwer News Service, would enable the DIA and the zoo, both owned by the city of Detroit but managed by independent nonprofits, to each assess 0.2 mills for operations if voters approve. In 2008, voters overwhelmingly passed a 0.1 mill property tax in Macomb, Oakland and Wayne counties for the zoo.
DIA officials say their museum has a structural deficit of $10 million and needs the help of a property tax to stay afloat while they work to improve its endowment. Zoo officials say the 0.1 mill levy has lost much of its punch as a result of plummeting property values since 2008.
“The DIA is one of the premier art institutions in the world,” said Senate Minority Floor Leader Buzz Thomas (D-Detroit), the sponsor of the DIA bill. The bill “is in no way a tax increase, but providing local control to residents across southeast Michigan.”
Senate Majority Leader Mike Bishop (R-Rochester), asked about supporting a bill that could lead to a tax increase, said the state cannot afford to lose its cultural institutions.
“I think all of us agree that our cultural entities have got to be supported or they’re going to go away,” he said. “And we’ve got to create an opportunity for them to sink or swim on their own. This is an opportunity for the local community to support that entity. The DIA and the zoo are cultural gems that I think speak volumes to the quality of life in our state.”
NEXT MICHIGAN ZONES: The Senate passed five bills that are part of the so-called Next Michigan development zones package, but negotiations continue and the bills are not yet in their final form. SB 1079 , SB 1081 , SB 1082 , SB 1083 and SB 1084 now go to the House while discussions continue on the renaissance zone portion of the legislation continue. The bills passed on votes of 30-7 or 29-8.
HOUSE, SENATE OK INCREASED ASSESSMENT ON HOTEL ROOMS: Convention and tourism bureaus would be allowed to assess up to a 5 percent tax on hotels and motels within the bureau’s district, up from the current 2 percent cap, as a way to boost revenues under matching bills that passed the House Senate on Wednesday.
The bill contains a number of reporting requirements for convention and tourism bureaus. There was no estimate on how much additional revenue that such bureaus could raise as a result of the bill (SB 1515 ), which passed 31-7 with seven Republicans voting no. Fifteen Republicans joined all 16 Democrats in support. In the House, HB 6206 passed 81-19.m.
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