October 04, 2010

City Of Livonia To Decide On Charging Residents A Fee For Collecting Tax

City Of Livonia Website

Livonia, Michigan (The Weekly Vice) - With a crushing economy, staggeringly high unemployment and an almost certain future of inflationary pricing ahead - Livonia City Council members have a problem on their hands.

People just aren't spending enough - and that means less tax revenue for the city.

So what is a city to do when its residence have less discretionary income to dole out for goods and services and the city treasury is running dry? Tax some more?

Well you see, in an election year, that's not good politics... Surely there must be another way for the city to squeeze another $1.8 million out of its residents rather than make spending cuts that would balance the city's budget.

Behold the 1% administrative fee for collecting taxes. And just in case you were wondering what that means exactly, lets put it in Layman's terms.

The city would like to charge its residents an extra 1% in fees as compensation for collecting taxes from said residents. The proposed 1% fee would reportedly generate $1.8 million in additional revenue for the city.

"Rocky, watch me pull a rabbit out of my hat."

According to city officials, Livonia city council members are considering the fee as part of its efforts to deal with a tax revenue drop that is estimated to amount to over $48 million dollars in this fiscal year alone.

A vote on the measure is expected on October 20

If the measure is passed, the city will charge a 1% fee to collect, process and distribute its resident's tax liability. They city's mayor, Jack Kirksey, says the city's financial difficulties make the fee necessary.

"I reluctantly agreed to support it," said Kirksey, who also pointed out that residents would see a reduction in their property tax bills despite the added fee.

Mr. Kirksey was pointing out the obvious. Residents would indeed see a reduction in those property taxes since the value of their properties have also sharply declined.

And you thought the city council wasn't in a giving mood!

Danny Vice
The Weekly Vice

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