Wayne County Transit Tax Cleared for August Ballot After Judge Dismisses Lawsuit

A Wayne County Circuit Court judge on June 1 dismissed a lawsuit seeking to block a countywide public transportation millage, clearing the way for the property tax proposal to appear on the August 4 primary ballot. The ruling ensures that voters in all 43 of the county's municipalities will decide on a new 10-year tax to fund the Suburban Mobility Authority for Regional Transportation (SMART) and other transit services.

The lawsuit was filed in early May by a residents' group, Not Smart Wayne, which argued that the process for placing the measure on the ballot violated state transparency laws and that the ballot language was designed to confuse voters. In her ruling, Judge Kathleen McCarthy denied the plaintiffs' motion for a preliminary injunction and closed the case, finding that the Wayne County Transit Authority had accurately labeled the proposal as a "new millage" and had not violated state laws.

For business owners in Wayne County, this ballot measure represents more than just a potential line item on a property tax bill; it is a direct operational and financial consideration. The proposed millage presents a dual impact. On one hand, for companies located in the 17 communities that previously opted out of transit funding, this tax introduces a new, unavoidable operating cost. This increase in property taxes, however modest, must be factored into financial forecasts and budgets. On the other hand, a more robust and geographically comprehensive public transit system could significantly widen the available labor pool for many businesses. Improved transportation access can reduce employee absenteeism and make it easier to attract and retain talent, particularly for essential frontline positions. This is a classic example of how local tax policy directly impacts a company's financial health and strategic planning.

Navigating these changes requires proactive analysis. Our firm's tax preparation and compliance services are specifically designed to help businesses understand and prepare for the financial implications of new local levies like this one. We work with clients to ensure such costs are correctly accounted for in their financial models and tax filings, preventing surprises and ensuring compliance. For guidance on how this potential new tax could affect your company’s bottom line, business owners can contact C&S Finance Group LLC at csfinancegroup.com to start a conversation.

The lawsuit alleged violations of Michigan’s Open Meetings Act (OMA), Freedom of Information Act (FOIA), election law, and the General Property Tax Act. The plaintiffs specifically contended that a March meeting where the Wayne County Transit Authority approved the ballot language was held in "secret" and without proper public notification. County officials consistently denied these allegations throughout the legal challenge.

Following the court's decision, county leaders expressed satisfaction with the outcome. "Contrary to the allegations brought by this lawsuit, there was never any failure to comply with the Open Meetings Act, nor was there any violation of Michigan election and tax laws, and the court agreed," Wayne County Executive Warren C. Evans said in a statement. Assad Turfe, chairman of the Wayne County Transit Authority, told the Detroit Free Press prior to the ruling that the ballot language was clear, accurate, and had been thoroughly reviewed by a team of lawyers.

The proposal asks voters to authorize the Wayne County Transit Authority to levy a property tax up to a maximum rate of 0.9831 mills for 10 years, beginning with the 2026 tax year and ending in 2035. This rate translates to approximately $0.98 for every $1,000 of a property's taxable value. For a home or business property with a taxable value of $100,000, the annual cost would be about $98, or just over $8 per month. If approved, the millage is projected to generate approximately $57.6 million in its first year to fund operations, maintenance, and service expansion for seniors, veterans, and people with disabilities.

The vote will have a different impact across the county. For the 26 municipalities already participating in the SMART system, the new 10-year millage would replace an expiring one and would not represent a tax increase. However, for the 17 communities that have historically opted out of the system, this would be a new tax levied on all property owners.

This countywide vote was made possible by a shift in state law. Since the SMART millage was first passed in 1995, Wayne County had allowed individual communities to opt out of participation. That changed when the Michigan Legislature passed a bill in 2024, signed into law by Governor Gretchen Whitmer in January 2025, which prohibits Wayne County communities from opting out. The change brings Wayne County's funding structure in line with neighboring Oakland and Macomb counties, which already have countywide transit taxes. Oakland County voters approved a similar measure in 2022, and Macomb has never allowed municipalities to opt out.

With the legal challenges now resolved, the focus shifts entirely to the August 4 election. The outcome will determine the funding and scope of public transportation across Michigan's most populous county for the next decade, directly affecting the mobility of residents and the operating environment for local businesses.