Traverse City Record-Eagle

Garfield Township

June 22, 2010

Townships consider financial ordinance

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com

TRAVERSE CITY — Two area townships will consider ordinances to restrict their business dealings with people or companies owing back property taxes or other fees.

Garfield Township will hold a public hearing on its financial responsibility ordinance when it meets today at 7 p.m. in the township hall. East Bay Township will hold a public hearing on its ordinance July 12. Both proposals put varying restrictions on the ability of individuals or businesses with back taxes to obtain permits or conduct business with the township.

"We want to make sure they pay their taxes before we spend taxpayer money to give them a permit," said Garfield Township Treasurer Jeane Blood. "This is putting people on notice. If you want work done, you need to pay your taxes."

The permit restriction would apply only to the parcel in which delinquent real or personal property taxes are owed. Businesses pay personal property taxes on equipment, and Garfield Township had a backlog of uncollected personal property taxes under the previous administration.

The ordinance also would prohibit the township from awarding a contract to any township vendor with unpaid property taxes.

"If you are not paying your taxes on time, we are going to want to do business with somebody that does," Blood said.

Chuck Korn, township supervisor, expressed reservations about the proposed ordinance.

"I think it discriminated against those who live within our township," Korn said. "I just want to make sure we don't put Garfield Township businesses at a disadvantage. A person who lives in another township that's behind on their taxes would have an advantage over a Garfield Township person behind on their taxes."

East Bay Township's proposed ordinance includes debts beyond just taxes, but doesn't include a mechanism to bypass bids if a vendor owes the township money. Township Supervisor Glen Lile said "that would be something worth looking at."

Lile said there are problems with developers who owe the township money for the cost of reviewing a project that's stalled.

"The way it stands now we can't stop them from pulling a permit to do something else with the property other than take them to court to try and collect," Lile said. "You can take them to small claims court to get a judgement and wallpaper the walls with them, because there's nothing else you can do with them."

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