Townships are also granted broad powers to enact and enforce ordinances. Zoning ordinances give townships the authority to regulate land use, while many other specific ordinances control activities that infringe on the rights of other citizens. The Michigan constitution and state statutes also limit the amount of property tax millage that townships can levy for general township operations. Charter townships, like cities, do not share in this allocated millage, but townships chartered by a referendum may levy up to 5 mills. In either case, the 5 mill limit may be increased up to 10 mills with a vote of the electors.
Townships also utilize other sources of revenue to support services.
User fees, permits, fines and special assessments on real property are the most frequently used sources. Townships serve other governmental units by providing tax collection services. To avoid imposing an unnecessary burden on citizens to pay separate property taxes to the township, schools, special assessment districts and the county, townships provide uniform assessment of property values and collect all property taxes on behalf of the other units of government. Only a very small portion of the taxes collected are retained by the township for its own operating purposes. Michigan townships, large and small, provide services tailored to meet the needs of their residents.