Moran Township Adopts Poverty Guidelines, Recognizes Robert Flora
By Paul Gingras

Prior to its deliberations Wednesday, December 5, the Moran Township Board of Trustees observed a moment of silence for township resident Robert Flora, who died December 4 in a traffic accident on US-2. After paying their respects to Mr. Flora, board members went on to adopt federal poverty exemption guidelines, deal with a repayment demand by Enbridge Energy, and pay for area road projects.

Mr. Flora, 92, frequently visited the hall and talked with trustees about sports and politics, said Township Supervisor Jim Durm. He left the township's zoning board of appeals a year ago and had served on the St. Ignace Recreation Advisory Committee several years ago.

Following brief discussion, the board decided to adopt the federal government's poverty exemption guidelines, which affect who may receive tax exemptions in the area. In certain circumstances, the township's board of review could waive property taxes for people at or below the poverty line under a "hardship exemption," said Mackinac County Equalization Director James Fenlon.

Poverty levels are determined by income and the number of household members, Mr. Durm said.

For example, for a three-person household, the income level for the poverty line is about $20,000. Therefore, a local government cannot set the poverty line at $15,000 and deny poverty-related tax exemptions to families earning between $15,000 and $19,000, Mr. Fenlon explained.

Municipalities can raise federal poverty income limits, but not lower them, Mr. Fenlon said.

Moran Township's decision was made at the request of the Michigan State Tax Commission, which is asking local units of government to ensure they are following

the law properly, prior to a statewide review of poverty exemptions over the next year.

The township has to have guidelines in place before the March board of review, when residents can appeal their taxes and make changes, Mr. Durm said. Only once in the past 10 years has the township reduced a resident's taxes after an appeal.

In other business, the board discussed a long list of delinquent personal property taxes levied against business equipment and inventory and voted to write off the 2005 tax bills for two businesses.

Mr. Durm advised Township Treasurer Susan Dionne to keep the majority of unpaid personal property taxes owed to the township on the books, but not to track down the business owners. Although collecting personal property taxes would benefit the township's budget, "it would cost more to pursue and prosecute than what we would bring in revenue," Mr. Durm said.

Some of the tax bills date to 1973 and some are for less than $3.

Of about $15,000 in delinquent property taxes, Ms. Dionne said she wants to go after several large bills, amounting to $9,752, dating between the 1996 and 2003 tax years.

Several area businesses owing back taxes have closed and the owners have moved away.

The board directed Mr. Durm to write a letter to the State Tax Commission asking what course the township should take regarding a $165,382.62-plus-interest repayment demand by Enbridge Energy, which owns a pipeline running through the township.

Enbridge has been settling out of court with townships for bills between 2003 and 2006, which the company claims were calculated using faulty depreciation tax tables provided by the state.

The board estimates that Enbridge will demand about $50,000 from the township. Most of the money collected went to Gros Cap School, and it has yet to be determined how much the school will have to pay back.

The township voted to pay the Mackinac County Road Commission $46,637.37 for resurfacing and other work done on Pointe Aux Chenes Road, $17,660.13 for culvert work on Pointe LaBarbe Road, and $6,666.66 for a turnaround and other work on Gudmunsen Road and Sixth Street.