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Council renews income-tax processing contract with Innovative Software Services
Summary
The council authorized the City Manager to sign a contract with Innovative Software Services for income-tax processing at up to $512,675 annually through calendar year 2027. Council said alternatives were limited and the award passed unanimously.
East Lansing — The City Council on Tuesday authorized a contract with Innovative Software Services Inc. to continue providing the city’s income-tax processing services.
Treasurer Andrea Smith presented the item, telling council that Innovative has been the city’s income-tax processor since the city began collecting income taxes and that market options are limited. Smith said the city briefly examined a state-level option, but that preliminary pricing from the State of Michigan was higher; staff will revisit that conversation in June.
The authorized contract amount is not to exceed $512,675 per year through calendar year 2027. Councilmember discussion noted the city’s gross income-tax collections in the most recent tax year were roughly $16 million, and council described the processor fee as a modest portion of overall collections.
Vote: Council authorized the City Manager to sign the contract unanimously.
Next steps: The City Manager will execute the agreement and staff will continue outreach to the state to confirm whether a state-provided processing alternative becomes competitive.
Speakers: Andrea Smith, City Treasurer; Robert Bellman, City Manager; Councilmembers Ian Altman, Mark Meadows, Sarah Watson; Mayor Pro Tem Singh; Mayor Brookover.
