Is a political subdivision required to levy a tax in order to pay JTA for contracted services?
No. Section 20(1) of Act 196 gives the political subdivision two contracting options for payment of JTA. The political subdivision can contract with JTA to make payments from the proceeds of taxes or special assessments imposed by the political subdivisions or out of any other funds legally available. Whatever the political subdivision chooses to do, Section 20(4) of Act 196 requires the contact to be approved by a resolution of the governing body of the political subdivision.
Related Questions
- If the political subdivision levies the tax to pay for JTA contracted services, is there any limit on the amount of the tax spelled out in Act 196?
- How are those political subdivisions, such as counties, townships and villages, supposed to pay JTA for the contracted services?
- Is a political subdivision required to levy a tax in order to pay JTA for contracted services?