This is a familiar story, where a tax is created for one purpose, then diverted to another in a political shell game at the Capitol, when it really should have gone away.
Twenty-five
years ago, in 1987, a special tax was
created in Wayne County, a 30% tax on
parking at and around Detroit Metro Airport
that raised about $8 million annually.
It was
designed as a bailout for an earlier Wayne
County fiscal crisis. It was supposed to go
away in 2010 when the bailout debt was
paid off, but in typical style, the debt is gone
but the tax remains.
Currently
the tax brings
in $21.5 million
annually,and has
raised over
$340 million in the
last 25
years.
Some goes to
the State Aeronautics Fund. Some goes to
the City of Romulus. Most goes to Wayne
County, not to solve a fiscal crisis or to
support airport operations, but to fund indigent
health care.
Now Senate Bill 1257 plays another shell game with this tax money. Under this bill, most of the revenue would be diverted to pay for Medicaid.There’s no tax like this at any other airport in Michigan. And there’s
no good reason
the business and vacation travelers who
park their cars at Metro Airport should pay a
special tax to fund Medicaid. Medicaid
is for the entire state, not just a handful
of travelers.And
there’s a good reason to stop this diversion
of funds dead in its tracks: it most likely violates federal law and common sense. Two different federal laws say you
can’t tax airport travelers and divert the funds away from air travel.
Furthermore, it’s the diversion of money off the Airport to the County that prompted the legislature to make the Airport a body independent of Wayne County 10 years ago. That legislation was supposed to separate the Airport financially from the County, now it’s time to finish what was started over a decade ago.
Enough is enough. Twenty-five years have passed and now is the time to repeal the airport parking tax.
Temporary taxes should be temporary, and shouldn’t live on just because politicians get
addicted to the money. But if they’re going to keep levying this tax, every dime of the revenue should be earmarked directly for the airport – improving its safety, security and operational effectiveness for the traveling public. Taxing the parking at the airport is an airport user fee. And money from an airport user fee should stay at the airport.
can’t tax airport travelers and divert the funds away from air travel.
Furthermore, it’s the diversion of money off the Airport to the County that prompted the legislature to make the Airport a body independent of Wayne County 10 years ago. That legislation was supposed to separate the Airport financially from the County, now it’s time to finish what was started over a decade ago.
Enough is enough. Twenty-five years have passed and now is the time to repeal the airport parking tax.
Temporary taxes should be temporary, and shouldn’t live on just because politicians get
addicted to the money. But if they’re going to keep levying this tax, every dime of the revenue should be earmarked directly for the airport – improving its safety, security and operational effectiveness for the traveling public. Taxing the parking at the airport is an airport user fee. And money from an airport user fee should stay at the airport.
FOR MORE INFORMATION OR TO GET INVOLVED EMAIL STOPTHESHELLGAME@GMAIL.COM