Bloomberg Tax
Aug. 18, 2023, 8:43 PM

Michigan Towns Properly Levied Taxes to Fund Retirement Benefits

Perry Cooper
Perry Cooper
Legal Reporter

A trial court was right to throw out two proposed class actions challenging taxes imposed by two Michigan cities to fund pension and healthcare benefits for retired police and fire employees, a state appeals court ruled.

The taxes didn’t run afoul the Michigan Constitution’s limits on when local governments can impose taxes without voter approval, Judge Anica Letica wrote Thursday for the Michigan Court of Appeals.

The 1937 Michigan Fire Fighters and Police Officers Retirement Act authorizes municipalities to impose taxes to fund a police and fire employee pension plan.

Taxpayers sued the cities of St. Clair Shores and Warren ...

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