25LINKBUDGET(FULL) - Flipbook - Page 60
City of Plymouth 2024 / 2025 Budget
combined state revenues of constitutional sales tax and EVIP distributions increased to a total
of $819,153 in fiscal year 2014/15, but then declined for fiscal year 2015/16 to $810,982.
During 2016/17, revenues began to increase again, and projections for the new 2024/25
budget are expected to reach $1,193.966.
State shared revenues constitute the second-largest funding source for the General Fund.
However, since the implementation of executive order cuts by the state, this revenue has
decreased from 19.4% of General Fund revenues to 8.8% of General Fund revenues for the
fiscal year 2024/25 budget. The City receives a share of the following taxes from the State of
Michigan:
a.
State Sales Tax (Constitutional): In accordance with the State Constitution of
1963, Article IX, Section 10, as amended, constitutional revenue sharing
payments are calculated based on 15% of the 4% portion of Michigan’s 6%
sales tax collections. These distributions are made to all Michigan cities,
villages, and townships on a population basis on the last business day of the
even-numbered months (October, December, February, April, June, and
August).
The revenue sharing population is defined by the Glenn Steil State Revenue
Sharing Act of 1971, 1971 Public Act 140, as amended (MCL 141.903(1)). For the
purpose of distributing revenue, population is determined based on the most
recent census, adjusted by 50% for any institutional population.
b.
State Sales Tax (Statutory): This portion of the historical distribution was
eliminated effective October 1, 2011.
c.
EVIP/CVTRS Returns: This state-shared revenue distribution is not linked to the
state sales tax but is rather a general appropriation by the legislature, partly
replacing the former statutory portion of the sales tax. Similarly, CVTRS
distributions are made six times per year and are contingent upon compliance
with three criteria established in Public Act 59 of 2013: (1) accountability and
transparency of public information, (2) consolidation of public services with
other communities, and (3) submission of a plan to address unfunded accrued
liabilities, as indicated in required annual audits.
d.
Liquor License Fees: The City annually receives approximately $15,000, a
portion of the fees charged by the state for liquor licenses issued within its
limits. In return, the City is responsible for enforcing state liquor laws within its
jurisdiction, which includes conducting periodic inspections of liquor-selling
establishments.
e.
Gas & Weight Taxes: The City receives a portion of state gasoline taxes and
license plate fees based on a two-part formula:
1. The per capita revenue share multiplied by the City population; and
2. The per street mile revenue share multiplied by the City street miles
and the urban road factor.
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