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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5915 June 5, 1981 CITIES: Imposition of service fees for police and fire protection to property of another city A city may not impose a service charge or fee upon another city for fire or police protection relative to that municipality's property located within its boundaries. Honorable William A. Ryan State Representative The Capitol Lansing, Michigan You have asked for my opinion as to the following question: 'Does a city have the right to impose a 'charge' or 'fee' for police and fire protection to another city for services rendered to the second city who has facilities which are located either partially or fully within the corporate boundaries of the first city?' City property being used for public purposes is exempt from taxation under the general property tax act, 1893 PA 206, Sec. 7m, as last amended by 1980 PA 142; MCLA 211.7m; MSA 7.7(4j), which provides in pertinent part: 'Property owned by . . . a . . . city . . . used for public purposes . . . is exempt from taxation under this act. Parks shall be open to the public generally. This exemption shall not apply to property acquired after July 19, 1966, unless a deed or other memorandum of conveyance is recorded in the county where the property is located before December 31 of the year of acquisition, or the local assessing officer is notified by registered mail of the acquisition before December 31 of the year of acquisition.' This exemption has been interpreted to exempt municipally-owned land from special assessments as well as from general property taxes. Big Rapids v Mecosta County, 99 Mich 351; 58 NW 358 (1894). The rationale for excluding such municipally-owned land from special assessments was stated in Big Rapids, supra, as follows: '[The] general tax law of the State exempts from taxation all public property belonging to the United States, to this State, or to any county, city, village, township, or school-district within this State, save lands purchased at tax sales and still held by the State. . . . Implied exemptions exist where property is owned and held by the state, its political subdivisions, and its municipalities for governmental purposes. Cooley, Tax'n (2d ed.), 172. . . . It has therefore been repeatedly held that, when these are mentioned as exempt in a general tax law, the exemption applies only to the taxes mentioned in the general law, and not to those which are of a private and local character, such as assessments for sewers, sidewalks, and the like, which are made according to the benefits conferred. This is the well-established rule, to which it is unnecessary to cite authorities. But the principle does not apply to public property owned and used by an entire county for public purposes only. Whenever the taxing power seeks to impose a tax upon such property, it must be able to point to legislative or constitutional authority. Worcester Co. v Worcester, 116 Mass. 193; City of Hartford v West Middle Dist., 45 Conn. 462.' [Footnote omitted, emphasis added.] 99 Mich 351, 353-354. The Big Rapids case was cited as authority when the Supreme Court held that the Detroit Zoo, its parking area and the Rackham public golf course, all owned by the City of Detroit but located beyond its boundaries, were being used for governmental purposes and were thus not liable for special assessments made upon the properties by the Oakland County Drain Commissioner. Detroit v Oakland County, 353 Mich 609, 613; 92 NW2d 47, 50 (1958). A review of Michigan statutes reveals no authority for a city to impose service fees for police services. As to fire protection services, cities under 15,000 inhabitants, as well as townships and incorporated villages, are authorized by 1951 PA 333, as amended; MCLA 41.801 et seq; MSA 5.2640(1) et seq, to defray the maintenance and operation of a fire department by both special assessments and collection of fees for services pursuant to Sections 1(3) and 10 thereof. 1951 PA 33, Sec. 1(3), supra, is silent on the question of whether service fees may be collected for services relating to municipally-owned property. In light of Big Rapids, supra, which proscribes special assessments against municipally-owned property, it is my opinion that service fees are not applicable to such municipally-owned property for the same reasons as expressed in that case. Accordingly, it is my opinion that a city may not impose a service charge or fee upon another city for fire or police protection relating to that municipality's property located within its boundaries. This conclusion is consistent with 2 OAG, 1958, No 3242, p 131 (May 14, 1958), which stated that the City of Lincoln Park was not authorized to refuse police and fire protection service to the Liquor Control Commission warehouse located in that city and that any payments by the Commission for such services in lieu of taxes must be specifically authorized by the Legislature. Frank J. Kelley Attorney General
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