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Local officials warn proposed state bills could remove utility sales tax and imperil township services
Summary
At a township meeting, officials discussed two active state house bills: one that would remove sales tax from utility bills and eliminate reconnect fees beginning Jan. 1, 2027, and another that could dissolve township trustees effective Jan. 1, 2028 — a change attendees said could jeopardize the volunteer fire department and property stewardship.
At a township meeting, a committee member warned that two active state house bills could significantly affect local services and revenues. Committee member (S2) told attendees that one bill would remove sales tax from utility bills — across electric, gas, water and sewer — and would take effect on Jan. 1, 2027. "If that comes back, that would be 01/01/2027. We would not bill sales tax," the committee member said. The same bill, S2 said, proposes eliminating the reconnect fee charged when a service is shut off; the township currently charges $25 to turn service off or on.
S2 also described a second bill seeking to dissolve township trustees, which S2 said could take effect on Jan. 1, 2028. "They're wanting to downsize what's, you know, kind of government, and that's our local government," S2 said, adding that dissolution could transfer township property — including "this building and the park" — to the county. "I just find it scary for the town," S2 said, noting the bill does not specify whether funds currently directed to township services, such as the volunteer fire department, would transfer to the county.
Chair (S1) and S2 discussed how nearby communities formed fire districts and built tax bases over several years, with S1 observing that local volunteers often rely on fundraising because departments lack sufficient funding. "He spends a lot of time raising funds because they don't get enough," S1 said of a volunteer (Terry) who helps sustain the local fire response.
No formal local action on the bills occurred at the meeting; S2 said the township expects a representative to come next month to brief the board and that the township must prepare an ordinance and plans if the state moves forward. Specifically, S2 said the township official must submit a plan by June 1 and an ordinance by Dec. 31 if dissolution proceeds. The committee did not vote on any position or take a directive at the meeting.
Why it matters: Removing sales tax on utilities would reduce local sales-tax-derived revenue streams and eliminating reconnect fees would remove a small but tangible source of fee revenue (the township’s current reconnect/turn-on fee is $25). Dissolving township trustees, if it passes and is implemented without funding-transfer provisions, could create gaps in local service provision, particularly for volunteer-run fire services that rely on local fundraising and dedicated facilities.
What’s next: Committee member (S2) said township leadership expects a visitor next month to explain the bills in more detail and that the township will have to draft an ordinance laying out how it would transfer responsibilities if a dissolution mandate advances.
