Livonia (MI) mulling 1% fee on taxes

[thundley4]

Livonia might charge its residents a 1% administrative fee to collect their property taxes, beginning with the December tax bill.
The city is considering the fee as part of efforts to deal with a substantial drop in revenue expected in its proposed $48.4-million budget for the next fiscal year. The council is holding a public hearing tonight, and is expected to vote on the proposed budget, which includes the fee, Oct. 20.

If the council chooses to charge its residents to collect, process and distribute their taxes -- an option permitted by state law -- Livonia would not be alone. Terry Stanton, spokesman for the Michigan Treasury Department, said more than three-quarters of the 1,800 tax-collecting units in the state charge the administrative fee.

Livonia Mayor Jack Kirksey said the city's financial difficulties make the fee necessary. Without it, the city, which has been steadily reducing personnel through attrition, would have to consider making personnel cuts beyond the 7% called for in the budget. The proposed budget calls for layoffs in various departments of three part-time and eight full-time positions, including two police officers and three civilian positions in the Police Department.


Read more: Livonia mulling 1% fee on taxes | freep.com | Detroit Free Press http://www.freep.com/article/20101004/NEWS02/10040385/1322/Livonia-mulling-1-fee-on-taxes#ixzz11Q0AMMHG

A tax to cover the cost of collecting and redistributing taxes? 

[SSG Snuggle Bunny]

I noticed how manufacturers in the US generate additional profits with their products and services by giving you coupons that raise the prices.

[NHSparky]

And they can't for the lives of them comprehend why unemployment there is highest in the nation and that people are leaving there in droves.

[Chris_]

[Gratiot]