Stories indexed with the term ‘accommodation tax’

Equalization Report Shows Stronger Economy

Washtenaw County board of commissioners meeting (April 16, 2014): Most local governments in Washtenaw County will see increases in tax revenue this year, according to the 2014 equalization report that county commissioners approved on April 16.

Raman Patel, Conan Smith, Dan Smith, equalization, Washtenaw County board of commissioners, The Ann Arbor Chronicle

From left: Washtenaw County equalization director Raman Patel with commissioners Conan Smith (D-District 9) and Dan Smith (R-District 2) at the April 16, 2014 board of commissioners meeting. (Photos by the writer.

The report was presented by Raman Patel, the county’s long-time equalization director. “Washtenaw County is showing improvements in the market,” he told commissioners. “We are slowly regaining our county’s equalized base. It appears that the worst part of the decline in market value is behind us.”

For 2014, taxable value in the county increased 2.02% to $14.18 billion. That’s a greater increase than the 1.68% climb in 2013, and an improvement over declines seen in recent years. Patel cautioned that several factors are impacting revenue for local governments, including the phase-out of personal property taxes, a variety of exemptions, and tax capture from entities like downtown development authorities.

More of the tax burden is also being shifted to residential property owners, he noted, compared to other categories, like commercial property. The category of residential property accounts for 67.34% of total property value in the county. Five years ago, in 2009, it was 63%.

In other action on April 16, commissioners gave initial approval to distribute proceeds from a countywide tax on hotels and other accommodations. For 2013, $472,846 was available for distribution. If the resolution is given final approval, the county will keep 10% ($47,285) to pay for enforcement of the accommodation ordinance. The remainder will be divided between the Ann Arbor Convention & Visitors Bureau ($319,171) and the Ypsilanti Convention & Visitors Bureau ($106,390).

During public commentary, Mary Kerr, president of the Ann Arbor Convention & Visitors Bureau, and Jason Morgan, director of government relations for Washtenaw Community College, highlighted the union training programs that will be coming to the area this summer. The CVBs have been instrumental in recruiting these kinds of events to Washtenaw County.

Commissioners also gave initial approval to the annual Urban County action plan, which outlines proposed projects funded by the U.S. Dept. of Housing and Urban Development. The Urban County is a consortium of Washtenaw County and 18 local municipalities that receive federal funding for low-income neighborhoods. Members include the cities of Ann Arbor, Ypsilanti and Saline, and 15 townships.

Final authorization was given to a two-year pricing proposal – for 2016 and 2017 – to provide police services to local municipalities through contracts with the county sheriff’s office. And commissioners gave final approval to a new brownfield redevelopment plan for the Thompson Block in Ypsilanti’s Depot Town.

In other action, the board passed a resolution declaring April 13-19 as National Public Safety Telecommunicator Week in Washtenaw County. They also honored Dr. Eugene Glysson, who had served on the county’s board of public works (BPW) since 1986, and was its chair since 1996. He died on April 2.

Several issues were raised during public commentary, including concerns about emergency sirens installed by a pasture in Scio Township. The owner told commissioners that the sirens spook his horses, causing a dangerous situation if anyone is riding them or standing nearby. Other topics discussed by the public included the creation of a new group to help end homelessness, called Our 2020 Vision, and efforts by University of Michigan students to reduce the use of plastic bags by imposing a per-bag usage fee. They’re garnering support in part through a MoveOn.org petition. [Full Story]

Distribution of Accommodation Tax Approved

Initial approval of proceeds from a countywide tax on hotels and other accommodations has been given by the Washtenaw County board of commissioners.

For 2013, $472,846 was available for distribution. Given initial approval at the board’s April 16, 2014 meeting was a distribution that sees the county keeping 10% ($47,285) to pay for enforcement of the accommodation ordinance. The remainder will be divided between the Ann Arbor Convention & Visitors Bureau ($319,171) and the Ypsilanti Convention & Visitors Bureau ($106,390).

A final vote on that distribution is expected on May 7.

The county collects the 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote … [Full Story]

County Board Debates Role in Transit Entity

Washtenaw County board of commissioners meeting (Oct. 17, 2012): With only two more meetings remaining in 2012 – both falling after the Nov. 6 election – county commissioners dispatched a range of agenda items on Oct. 17, including ordinance changes and budget-related action.

Catherine McClary, Mary Jo Callan, Washtenaw County treasurer, office of community and economic development, Washtenaw County board of commissioners, coordinated funding, The Ann Arbor Chronicle

From left: Washtenaw County treasurer Catherine McClary and Mary Jo Callan, director of the county/city of Ann Arbor office of community & economic development. Both women attended the Oct. 17 meeting of the county board of commissioners to address agenda items. (Photos by the writer.)

But they spent much of their discussion on a topic not on the agenda and not requiring a vote: public transit. It emerged that the county administrator now will be sending out additional notification letters to local jurisdictions about a new transit authority, called The Washtenaw Ride. The AATA had initially sent letters notifying jurisdictions of a 30-day window ending Nov. 2.

The new letters, which will likely be sent in early November and alert municipalities to a second 30-day window for opting out of the new authority, were originally expected to be sent by The Washtenaw Ride. But there’s been a delay in forming the new board, so the Ann Arbor Transportation Authority has asked that the county handle the notification process. The county had filed the articles of incorporation for the new entity in early October, at the AATA’s request.

Some commissioners were concerned about the cost –  because the agreement that lays out the process for forming the Washtenaw Ride indicated the county would not be financially responsible for any expenses. The following day, AATA CEO Michael Ford stated at the AATA board meeting that the county would be reimbursed for its expenses.

Part of the county board’s discussion on public transit also centered on proposed state legislation to set up a regional transit authority (RTA) for Detroit and the counties of Washtenaw, Wayne, Oakland and Macomb. Some commissioners wanted more information about Washtenaw County’s involvement, and asked for a working session on the topic.

Added to the agenda during the Oct. 17 meeting was a countywide civil infractions ordinance. It was given initial approval by commissioners – with a final vote and public hearing  scheduled for their Nov. 7 meeting. Currently, criminal misdemeanors are the only penalty that the county can apply for an ordinance violation – for infractions like not having a dog license. The intent of the proposed ordinance is to give the county more flexibility to designate violations of other county ordinances as a civil infraction, rather than a criminal misdemeanor. The proposed fines would be $50 for a first offense, $100 for a second offense, and $500 for a third or any subsequent offense.

The board also passed a policy to reduce barriers to breastfeeding in Washtenaw County facilities, and gave final approval to an ordinance change that shifts responsibility for the county’s accommodation tax from the county treasurer to the county finance director.  The accommodation tax is collected from hotels and motels.

Also approved was a one-year extension for the coordinated funding model that’s been piloted for two years as a way to more effectively fund local human services nonprofits. An evaluation of the program – a partnership between the county, city of Ann Arbor, United Way of Washtenaw County, Washtenaw Urban County, and the Ann Arbor Area Community Foundation – is expected early next year.

The board received a preliminary apportionment report for Washtenaw County, giving details of the 2012 taxable valuations for property in the county, by municipality. And commissioner Rob Turner reported that a new actuary has been selected to conduct reports on the status of the county’s employee pension and retirement health care funds. Turner is concerned that the fund balances are too low, leaving the county with unfunded liabilities that need to be addressed.

Speaking during public commentary, John Wagner – a volunteer for Camp Take Notice – urged commissioners to consider providing a county facility for the homeless, as winter approaches. The meeting also included recognitions of work done by SafeHouse Center, a domestic violence shelter, and local cooperatives like the Inter-Cooperative Council (ICC) of the University of Michigan. Gaia Kile, vice president of the board for the People’s Food Co-op, told commissioners that the hope is to turn these types of “highly democratic economic institutions” into the fastest-growing segment of the economy. [Full Story]

County OKs Accommodation Ordinance Change

Following a public hearing on the issue, the Washtenaw County board of commissioners gave final approval to an ordinance change that shifts responsibility for the county’s accommodation tax from the county treasurer to the county finance director. The vote came at the board’s Oct. 17, 2012 meeting. Initial approval had been given on Oct. 3, 2012.

The ordinance amendment approved by commissioners transfers a 0.7 full-time equivalent accounting job from the treasurer’s office to the county finance department, and amends the accommodation tax policy to clarify that the tax is only assessed against the actual price of a hotel, motel or other rental – not against other amenities that the business might charge its customers, such as Internet access or an … [Full Story]

County Board Debates, OKs Act 88 Tax Hike

Washtenaw County board of commissioners meeting (Oct. 3, 2012): A sometimes heated debate over whether to raise a tax for economic development resulted in narrow approval by the board. It was a 6-5 vote on the increase to 0.06 mills, up from 0.05 mills. As an example, the 20% hike means that taxes for economic development will increase from $5 to $6 for each $100,000 of a property’s taxable value. The issue had been previously discussed at the board’s Sept. 19 meeting, but postponed until Oct. 3.

Janis Bobrin

Janis Bobrin, Washtenaw County’s water resources commissioner, attended the Oct. 3, 2012 county board meeting to present environmental excellence awards. She received a standing ovation from commissioners. She is not running for re-election, and will leave office later this year after more than two decades in that position. (Photos by the writer.)

The board is authorized to levy the tax under Act 88 of 1913 – and it does not require a voter referendum. Voting against the increase were commissioners Ronnie Peterson, Alicia Ping, Wes Prater, Dan Smith and Rob Turner. They cited several objections, including the timing of a tax increase while many taxpayers are struggling because of the economy, and the unlikelihood that the tax will be lowered in the future, when economic conditions improve. Peterson also felt that the Act 88 funds aren’t being used for their original purpose – to leverage matching dollars for economic development – and instead are being diverted to support county operations.” It was never meant to be a piggy bank for county government,” he said.

The final vote to levy the increased tax passed 8-3, with Ronnie Peterson, Wes Prater and Dan Smith voting against it. Alicia Ping has in the past also voted against the Act 88 tax, but supported it this time – though she voted against the amendment to increase the rate. She hoped commissioners would consider reallocating some funding for the western side of the county, pointing out that there are economic development needs there too, including a lack of decent Internet access.

Far less contentious was an initial vote to move control over administering the county’s 5% accommodation tax from the county treasurer’s office to the finance director. Two members of the Washtenaw County Hotel/Motel Association spoke in support of changing the accommodation ordinance in this way. The vote by commissioners was unanimous, though Dan Smith noted that this is the second time this year that the ordinance has been revised, and he hoped it would be the last. He also expressed some concern that all hoteliers aren’t being treated equitably. A final vote and public hearing on the change is set for Oct. 17.

Commissioners also approved a set of recommendations to guide county administrator Verna McDaniel in her negotiations with the Humane Society of Huron Valley for animal control services. The current contract with HSHV ends on Dec. 31. An accompanying report from a policy task force was discussed only briefly – in part because the final version had been sent to commissioners only that day and there had been little time to digest it, and in part because some commissioners wanted to adjourn so that they could watch the first presidential debate, which began at 9 p.m. The board plans to continue discussion of the issue at a future date.

During the meeting, board chair Conan Smith told commissioners that a caucus would be held immediately prior to the next board meeting – on Nov. 7, at 5:30 p.m. – to discuss appointments to various county boards, commissions and committees. Such appointment caucuses are open to the public. [A listing of all vacancies is found on this website. An online application to apply for an opening can be found here.] The news prompted Ronnie Peterson to criticize the process, which he felt was not sufficiently transparent. [Full Story]

Accommodation Ordinance Change in Works

Control over administering and enforcing Washtenaw County’s accommodation tax is being shifted from the county treasurer to the county finance director, following an ordinance change given initial approval by the county board of commissioners on Oct. 3, 2012. A final vote is expect on Oct. 17. The board also set a public hearing for that meeting, to seek input on the proposed changes.

The ordinance amendment passed by commissioners also shifts a 0.7 full-time equivalent accounting job from the treasurer’s office to the county finance department, and amends the accommodation tax policy to clarify that the tax is only assessed against the actual price of a hotel, motel or other rental – not against other amenities that the business might charge … [Full Story]

County Board Deals with Transit, Budget, Labor

Washtenaw County board of commissioners meeting (Aug. 1, 2012): In a move that extends the approval process for a countywide public transportation system, commissioners amended the articles of incorporation for a new transit authority then ultimately approved that document and a related four-party agreement on a 6-4 vote.

Sarah Pressprich Gryniewicz, Leah Gunn

Sarah Pressprich Gryniewicz, left, talks with Washtenaw County commissioner Leah Gunn prior to the start of the Aug. 1, 2012 board of commissioners meeting. Gryniewicz is community outreach coordinator for the Ann Arbor Transportation Authority. (Photos by the writer.)

Because the articles were amended, they will need to be reconsidered by the other three parties in the agreement: the city councils of Ann Arbor and Ypsilanti, and the board of the Ann Arbor Transportation Authority, which is spearheading this effort. Those governing bodies are expected to take up the issue at meetings later this month. It will be on the Ann Arbor city council agenda for its Aug. 9 meeting.

Before the county board’s Aug. 1 vote, about a dozen people spoke during a public hearing on the issue, the majority of them in support of the agreement and of expanded public transit in general.

Although amendments had been considered and voted down at the board’s July 11 meeting, on Aug. 1 Rob Turner proposed a new amendment to the articles of incorporation. The original draft stipulated that a two-thirds majority of the new authority’s board would be required to amend the articles of incorporation. Turner’s amendment would have stipulated that a unanimous vote by the new authority’s board would be needed to make such changes. Leah Gunn offered a compromise – a four-fifths majority, or 12 of the new authority’s 15 board members. That amendment to Turner’s amendment passed on a 6-4 vote, with dissent from Turner, Conan Smith, Felicia Brabec and Wes Prater. The vote on the amended amendment itself – requiring the four-fifths majority – passed unanimously.

Turner felt his original amendment offered safeguards for smaller communities. It’s possible for communities to decide to join the new transit authority, only to have the articles of incorporation – the “rules of the game” – changed after they’ve joined, he said. If his amendment had been approved, Turner said he would have supported the four-party agreement and articles of incorporation. He said it no longer seemed like a countywide authority – it seemed like an Ann Arbor system that others could join. That saddened him, he said.

Joining Turner in his final vote against the overall agreement and articles of incorporation were Alicia Ping, Wes Prater and Dan Smith. Rolland Sizemore Jr. was absent.

A range of other items were on the Aug. 1 agenda. Commissioners suspended the county’s use of Construction Unity Board (CUB) agreements, responding to a change in state law. They also gave final approval to a change in the county’s accommodations ordinance, exempting bed & breakfasts, cottages and individuals who occasionally lease out rooms from the 5% accommodations tax. And addressing a need for veterans, the board authorized the county clerk to offer photo IDs that can be used to redeem discounts offered at local businesses.

On an 8-2 vote, commissioners also approved a brownfield financing plan for a $39 million residential development at 618 S. Main St. in Ann Arbor. Before the board’s vote, both Felicia Brabec and Yousef Rabhi praised the development, but said they were voting against it because of concerns about affordability. They did not feel that most young professionals would be able to afford living there, and stressed the importance of having more affordable housing in the downtown area.

The board also heard a report from the county treasurer, and got a second-quarter financial update from staff. Commissioners then approved a $1,263,994 mid-year adjustment to its 2012 general fund budget, bringing the 2012 general fund budget to $101,162,770.

In one of the least controversial items of the meeting, commissioners passed a resolution commending the Washtenaw Community Concert Band – formerly the Ypsilanti Community Band – on its 35th season. Dan Smith, who plays the trumpet, is a member of that group. [Full Story]

County Board Exempts B&Bs from Hotel Tax

Bed & breakfasts and cottages are now exempt from Washtenaw County’s 5% accommodations tax, following final approval of ordinance changes by the county board of commissioners at their Aug. 1, 2012 meeting.

In addition to exempting cottages and bed & breakfasts with less than 14 rooms, the change also exempts individuals who occasionally lease out rooms. These types of establishments account for less than 1% of the total tax collected in Washtenaw County, according to a staff memo accompanying the resolution.

According to the county treasurer’s report to the Washtenaw County accommodation ordinance commission, in 2011 the county collected $3.99 million in accommodation taxes. The money is primarily distributed to the county’s two convention & visitors bureaus (CVBs) – in Ann Arbor ($2.69 million … [Full Story]

Long Debate, But County Transit Moves Ahead

Washtenaw County board of commissioners meeting (July 11, 2012): Two agenda items dominated the discussion at the recent county board meeting: (1) an interim plan for the Washtenaw Head Start, reducing staff as the county prepares to hand over the program to a new entity, and (2) documents related to a proposed countywide transit authority.

Michael Ford, Sarah Pressprich Gryniewicz, Dan Smith

From left: Michael Ford, CEO of the Ann Arbor Transportation Authority; Sarah Pressprich Gryniewicz, AATA’s community outreach coordinator; and Washtenaw County commissioner Dan Smith. Smith proposed several amendments to the four-party agreement and articles of incorporation, which form the foundation for a new county public transit authority. All of the amendments were defeated. (Photos by the writer.)

After a 2.5-hour debate, county commissioners on a 7-4 vote gave initial approval to a four-party agreement and articles of incorporation that lay the foundation for a broader public transit authority in this area – tentatively called the Washtenaw Ride Transportation Authority. Voting against the agreement and articles of incorporation were Alicia Ping, Wes Prater, Dan Smith and Rob Turner. The board also set an Aug. 1 public hearing to gather feedback on the agreement. A final vote is expected to take place at that Aug. 1 meeting.

The other parties in the agreement include the cities of Ann Arbor and Ypsilanti, which both would contribute existing millages to the new authority. The fourth party to the agreement is the Ann Arbor Transportation Authority, which is spearheading this effort and would shift about $200 million in assets to the new entity. The governing bodies of those three parties have already approved the transit documents. [.pdf of four-party agreement and articles of incorporation]

The board debated several amendments put forward by Dan Smith, but none of the amendments secured enough votes to pass. One of the main arguments against making any changes came repeatedly from Leah Gunn, who noted that amendments made by the county board would require that the other three parties reconsider the documents. She called it a “foolish waste of time.”

Smith argued that this was the first time that formal, representative input has been heard from communities outside of Ann Arbor and Ypsilanti. The amendments were intended to make the new transit authority more attractive to smaller municipalities, who’ll have the option of opting out. Smith raised concerns that the current governance structure doesn’t provide the best possible representation for taxpayers.

Another issue drawing heated discussion related to Head Start, which provides pre-school services to 561 local children, ages 3-5, and their families. Last year, the board voted to relinquish its 46-year administration of the program on July 31, 2012. But the transition to a new administrator – a process overseen by the federal Head Start program – hasn’t moved as quickly as expected. So the county agreed to a one-year extension to continue administering the program, through July 31, 2013.

On July 11, the county board was asked to approve changes to the program from Aug. 1, 2012 through July 31, 2013 – as part of authorizing a federal grant application for the program. Ronnie Peterson cast the sole vote against the changes, and objected strenuously to any program cuts. He voiced his concerns at length, and asked – as he has in the past – that independent experts be brought in to discuss how the changes will impact the children. He also vowed to try to keep Head Start under the county’s administration, rather than relinquishing control. The issue will be addressed at an Aug. 2 working session, but it’s unlikely that the board will reverse its decision to cut ties with Head Start.

Other commissioners objected to Peterson’s contention that they didn’t care about poor children. Rob Turner urged board chair Conan Smith to form a coalition of local educators and government leaders to tackle the problem of educational disparities within the county.

Separately, the board passed a resolution supporting the selection of the Washtenaw Intermediate School District as the next local Head Start administrator. The selection will be made by federal Head Start officials.

In other action, commissioners heard public commentary and gave initial approval to exempt bed & breakfasts and cottages from Washtenaw County’s 5% accommodations tax. In a separate vote, the board set a public hearing for Aug. 1 to seek input on the proposed ordinance change. A final vote on the resolution is expected at the board’s Aug. 1 meeting.

That Aug. 1 meeting will also include a public hearing and vote on a brownfield financing plan for a residential development at 618 S. Main St. in Ann Arbor. The apartment complex is located at the site of the former Fox Tent and Awning, north of Mosley between Main and Ashley, and is being put forward by Dan Ketelaar’s Urban Group Development Co.

In another development-related matter, the board authorized a contract with Sylvan Township related to debt repayment on bonds issued 11 years ago for a water and wastewater treatment plant. It’s another attempt to establish an arrangement under which Sylvan Township will repay the county for covering bond payments – contingent on Sylvan Township voters approving a 20-year, 4.4 mill tax that’s on the Aug. 7 ballot. [Full Story]

Changes to Exempt B&Bs from Hotel Tax

A move to exempt bed & breakfasts and cottages from Washtenaw County’s 5% accommodations tax received initial approval at the July 11, 2012 meeting of the county board of commissioners. In a separate vote, the board set a public hearing for Aug. 1 to seek input on the proposed ordinance change. A final vote on the resolution is expected at the board’s Aug. 1 meeting.

In addition to exempting cottages and bed & breakfasts with less than 14 rooms, the change would also exempt individuals who occasionally lease out rooms. These types of establishments account for less than 1% of the total tax collected in Washtenaw County, according to a staff memo accompanying the resolution.

According to the county treasurer’s report to … [Full Story]

Accommodation Tax Contract Amended

A contract amendment regarding the distribution of the county’s accommodations tax was given final approval at the Sept. 21, 2011 meeting of the Washtenaw County board of commissioners.

The county collects a 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business. The contract calls for the county to retain 10% of that tax to defray the cost of collection and enforcement. (Until 2009, the county had only retained 5% for this purpose.) The remaining funds are split, with 75% going to the Ann Arbor Convention & Visitors Bureau, and 25% going to the Ypsilanti Convention & Visitors Bureau.

The … [Full Story]

County to Amend Hotel Tax Contract

A contract amendment regarding the distribution of the county’s accommodations tax was given initial approval at the Sept. 7, 2011 meeting of the Washtenaw County board of commissioners. Final approval is expected at the board’s Sept. 21 meeting.

The county collects a 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business. The current contract calls for the county to retain 10% of that tax to defray the cost of collection and enforcement. (Until 2009, the county had only retained 5% for this purpose.) The remaining funds are split, with 75% going to the Ann Arbor Convention & Visitors … [Full Story]

County Budget Moves Toward Final Vote

Washtenaw County Board of Commissioners meeting (Nov. 18, 2009): The county’s administration and elected officials have been grappling with the 2010-2011 budget for nearly a year, and passed a milestone at Wednesday’s meeting with approval of the budget during the board’s Ways & Means Committee meeting. They’re expected to take a final vote at the Dec. 2 regular board meeting. Staff members who attended the meeting seemed visibly relieved.

The board also got an update on the 2009 budget, made appointments to more than a dozen commissions and committees, and approved emergency funding to help provide shelter for the homeless during the winter months. Details on these and other agenda items after the break. [Full Story]

County’s Agenda: Budget, Police Services

It isn’t often that a member of the public attends the administrative briefing for the Washtenaw County Board of Commissioners, but on Tuesday, Mohammad Jama – a Washtenaw Technical Middle College student – showed up to fulfill a requirement for one of his classes.

Three of the 11 commissioners also showed up for the briefing, which is held the week before a regular board meeting. It’s a venue for the county’s administration to review informally the upcoming agenda. The agenda will be full for the Nov. 18 meeting, one that includes an update on the 2009 budget – it’s now showing a surplus – and a likely vote on the 2010/2011 budget, which had been pulled from the Nov. 4 agenda.

The briefing also touched on a potentially controversial agenda item: A request from Sheriff Jerry Clayton to change the policy related to police services contracts with local municipalities. Other items on the agenda for Nov. 18 include funding to support the homeless, a change in allocation of the accommodation tax, and appointments to more than a dozen county committees and commissions. Details after the break. [Full Story]