Saugatuck City Officials Renew Semi-Annual Tax Collection Agreement With Local School District
The City of Saugatuck will continue to collect taxes twice a year for the Saugatuck Public School District (SPS) after city officials renewed an agreement to handle that duty.
School districts throughout Michigan can choose to either have their tax levies collected once or twice a year.
If a district chooses to only have those taxes paid/collected once a year, there is no cost to the schools.
If, however, a district wants to have residents pay their school taxes twice a year, it must negotiate a fee with the municipality that already handles that work. In this case, the City of Saugatuck.
SPS has been on a schedule for twice-a-year payments and pays various municipalities to collect the taxes owed it during the summer season.
In its recently contract renewal with the City of Saugatuck. City Manager Kirk Harrier says SPS will pay the city $2.75 per
Saugatuck schools collect twice a year and pays several municipalities, including the city of Saugatuck, for the summer collection. The school district will pay the city $2.75 per parcel it collects on in 2016.
The same agreement - and the amount paid for that service - also extends to the Ottawa Area Intermediate School District.
Collecting taxes during the summer helps with the district’s cash flow needs, according to Elizabeth Broderick, director of business for Saugatuck schools.
She said state funding doesn’t start arriving in the district’s coffer until October, even though the school year - and its more pressing financial needs - begin in September, thus the need for the summer tax dollars.