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City officials hope to levy a tax on Jackson residents to refund them a stormwater utility fee ruled illegal by the Michigan Court of Appeals.

JACKSON, MI – If Jackson officials get their way in court, city residents may be required to pay a one-time tax of $57 before they're refunded a $28 stormwater fee.

Under the proposal, the city would take the $806,901 refund owed to taxpayers and divide it equally among the owners of nearly 15,000 parcels billed the stormwater fee. Homeowners paid $28 a year, while business owners paid a much higher rate based on the size of your lot, the amount of asphalt on their property and other factors.

A Michigan Court of Appeals ruling canceled the city's controversial stormwater utility fee in Aug. 2, 2013. Later that month, resident Phillip Panzica filed a class action lawsuit and the city was order to refund the fees.

City attorneys from Miller, Canfield, Paddock and Stone, P.L.C. said they are not only allowed to levy a tax to refund residents the stormwater fee, but are required under state law.

"The class cites not one case that supports the notion that Michigan courts may not only prohibit a municipality from relying on statutorily-conferred rights, but also dictate how the municipality manages the payment of its own debts," city attorneys claim in records filed Aug. 14 with the Jackson County Circuit Court.

Class attorney Brian Surgener said he is seeking to avoid the consequence of the city taxing property owners a second time to raise revenue to pay themselves back for a tax that "never should have been imposed."

"Under their proposed method of refunding the tax, they would divide the total money judgement by the total number of taxpayers in Jackson and levy an equal amount," he said. "They would tax each residential property owner $57 and then refund them each $28. A non-residential property owner would likewise be levied a tax of $57, but because most businesses paid a much higher stormwater utility fee, they would receive a refund larger than $57."

The courts have yet to rule how the city will be required to refund residents and business owners the stormwater fee.

Contact Will Forgrave at wforgrav@mlive.com or 517-262-7554. Follow him on Twitter at @WillForgrave.