Local Taxes in Binjing

In Binjing, all residents contribute to their Local Units (LUs) by paying Dwelling Fees. However, due to recent changes across Binjing and all provinces, these Dwelling Fees now require a minimum of 35cc, which is made up of Primary Local Unit Contribution (PLUC) and Property Occupancy Charge (POC). The Party Secretaries of each LU are responsible for organising the collection of these fees along with adjusting the POC for each resident/citizen within their local unit.

Taxes Paid by Residents to the Local Unit

As a resident renting space in a Binjing Local Unit, a Dwelling Fee is paid to the Local Unit. This fee is determined as follows:

The Dwelling Fee comprises two distinct parts:

Ex. Binjing Citizen 1-

Party Secretaries are responsible for collecting the Dwelling Fees. They may set deadlines for the payment of Dwelling Fees and may levy a fine of at most 8cc for late payments by residents.

Taxes Paid by the Local Unit to the Party

Each Local Unit, through its Party Secretary, has a financial duty to the Party, defined as the Minimum Local Tax (MLT). It comprises two components:

  1. Sum of all Primary Local Unit Contributions (PLUCs): The total of PLUCs due from all individuals who have designated the Local Unit as primary. The Party Secretary is accountable for this sum as part of the MLT, regardless of actual collection from each resident.
  2. Local Unit Property Tax (LUPT): A fixed amount for the Local Unit, determined by the Party, based on the Local Unit’s size and location.

The Party Secretary must ensure the Local Unit’s Total Local Remittance (TLR) to the Party is completed before Saturday each week (i.e., by end of day Friday).

Local Unit Treasury

A Local Unit may establish a Local Unit Treasury (LUT). The LUT’s total funds may not exceed twice the Local Unit’s LUPT; if the balance or an allocation would exceed this cap, any excess must be included in the next TLR to the Party. These LUT funds are managed by the Party Secretary and can be used for future Local Unit tax obligations or other expenses benefiting the Local Unit.

Tax Procedures

The Party Secretary manages the collection and remittance of funds. The procedure is as follows:

  1. The Party Secretary collects the Dwelling Fee from each resident, by the deadline they have established.
  2. The Party Secretary may adjust these collected funds by either allocating a portion to the Local Unit Treasury (LUT) or using LUT funds to supplement the collections. The sum after these adjustments is the Total Local Remittance (TLR), and should be no less than the MLT.
  3. This TLR must be remitted in full to the Party, and must be sufficient to cover the MLT.

A Surplus is generated if the Total Local Remittance (TLR) exceeds the Local Unit’s MLT, with the surplus being the exact amount of this excess. From this surplus, half (50%) is paid by the Party to the Party Secretary as salary, and the other half is retained by the Party’s treasury.

Penalties

The Party Secretary must ensure the Total Local Remittance (TLR) is sent to the Party on time. If the TLR is sent late or is not enough to cover the MLT, the Party Secretary is fined 20cc. This fine is in addition to the responsibility to cover any missing MLT amount. If these problems happen often or are serious, the Party Secretary can be removed from their role.

Vacant Party Secretary Positions

If the Party Secretary position in a Local Unit is vacant, the Minister for Administration will temporarily take over the Party Secretary’s duties until the vacancy is filled. They will ensure that the Local Unit meets its tax obligations and that the Local Unit Treasury (LUT) is managed properly. They will not be subject to the same penalties as a Party Secretary.