The City of Grand Rapids receives a large portion of its funding from tax dollars. For the year 2020, Grand Rapids is set to lose $10-$21 million of their income tax.

Due to the stay at home order, many people who work downtown, didn't. Grand Rapids is one of 24 cities through out the state that collect income tax.

Photo by Kelly Sikkema on Unsplash

Grand Rapids Mayor Rosalynn Bliss told Fox 17 that Grand Rapids is set to lose,

"on the optimistic side, about a $10 million loss; on the worst-case scenario side, we're looking at about $20, $21 million."

If the hole in revenue from income taxes are not filled, the city will have to come up with alternate plans like delaying city projects or putting a hiring freeze on city positions. If enough people come back downtown to eat, attend sports games and concerts, then that money could make up for what was lost during the pandemic. You're W-2 form will indicate if you pay local or city income tax.

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