While 55% of voters supported disincorporating the village, the measure failed because it required a two-thirds majority to pass.
The vote stems from a mix of disputes over regional fire service and transparency in local government.
In March, Sand Lake stopped providing fire service to nearby townships due to high costs and inability to reach long-term funding agreements. The townships then moved to create their own fire authority.
A group of residents proposed dissolving the village and merging with nearby Nelson Township, arguing it would lower property taxes and streamline services.
The question appeared on the ballot for voters in both municipalities.
Also on the ballot in Nelson Township was a proposal for a new 1.5 mills to pay for its new fire department.
That millage was approved by a simple majority.
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