Ann Arbor City income tax lacks support from its business community according to the survey conducted by the Ann Arbor Chamber of Commerce. 300 of its members were surveyed and 74% said that they did not support the tax creation.

Fifty seven percent of the respondents said that the tax might affect the decision to work within city limits while 62% said that the tax will help expand or operate their business in the city of Ann Arbor.

Ann Arbor City Council has yet to make a draft of the formal proposal. However, the feasibility study was released last month. The yax proposal will create 1% income tax for the residents and businesses and 0.5% on the income of non Ann Arbor residents who work in the city. The tax will be in lieu of the operating property tax mileage of the city.

U-M students will be taxed as residents if they register to vote in the city even if their permanent address is outside Ann Arbor. But if they do not register they will be on the 0.5% tax category.

“The rationale in doing this survey was to get some feedback from our members about the proposed city income tax and to communicate that feedback to City Council in advance of Monday night,” said Kyle Mazurek, vice president of government affairs at the Ann Arbor chamber.

The study found out that this income tax will generate $42.2M in revenue by 2011, administrative costs net. Property taxes are expected to raise $28M in 2011.

Income tax is projected to generate $45 in revenue as compared to the $30.6 million in projected revenue from the city’s operating property tax millage.

Find an Ann Arbor Business in the Directory of Ann Arbor, MI.