Local Unit Finances
Each week, each Local Unit owes a debt to the Party. The primary duty of a Party Secretary is to ensure this Local Unit Obligation (LUO) is met. To this end, the Party Secretary has two main tools: the Dwelling Tax (DT) and the Local Unit Treasury (LUT). These two tools are used to pay a weekly Local Unit Remittance (LUR) that settles the LUO.
Make sure to read the Taxes in Binjing page for an overview of all taxes in Binjing.
Local Unit Obligation
The Local Unit Obligation (LUO) is what a Local Unit owes the Party each week. It is due by the Binjing Central Tax Deadline. It has two parts:
- a fixed base cost depending on the specific Local Unit; and
- a per-resident cost depending on the number of residents in the Local Unit.
The base costs are as follows:
| Local Unit | Base LUO |
|---|---|
| LU-1 | 134 ls |
| LU-2 | 134 ls |
| LU-3 | 170 ls |
| LU-5 | 134 ls |
| LU-6 | 134 ls |
| LU-V | 85 ls |
| LU-N | 125 ls |
The per-resident cost amounts to 0,05 gc and 5 ls per resident. Each week, it is recalculated by the Central Government based on the number of residents reported in the previous week’s Local Unit Ledger (LUL).
As is customary, the landscrip part of the LUO may be paid either in landscrips or in coins at a fixed exchange rate of 1 ls per 0,03 gc. The coin part of the LUO must be paid in coins.
If the Local Unit does not collect enough Dwelling Tax or does not have enough in its Local Unit Treasury to meet the LUO, the Party Secretary is still liable to pay the full LUO to the Party. They can do so by for example increasing their own Dwelling Tax on-the-fly.
Dwelling Tax
The primary lever the Party Secretary has to ensure the LUO can be met is the Dwelling Tax (DT). It is a tax paid by each resident to the Local Unit. The Party Secretary has full discretion to set the amount of coins and landscrips each resident must pay, with the only restriction being that the coin amount must be at least 0,05 gc per resident per week. The Party Secretary also has full discretion to set the deadline for payment of the DT.
When changing the Dwelling Tax, the Party Secretary must take care to follow the official Alinea rules regarding changing the taxes owed.
As is customary, if a landscrip amount is set, the Party Secretary must allow residents to pay it either in landscrips or in coins at a fixed exchange rate of 1 ls per 0,03 gc.
Should a resident leave the Local Unit, whether they still owe any upcoming Dwelling Tax depends on how they leave:
- If the resident leaves through their own decision, the Party Secretary may, at their discretion, still charge the next Dwelling Tax when it is due.
- If the resident is (being) evicted, they are not liable for Dwelling Tax whose deadline falls after the eviction notice was issued.
Enforcing the Dwelling Tax
If a resident does not pay their Dwelling Tax in full and on time, the Party Secretary may issue a 35 cc fine, pursue eviction, or both. Taking enforcement action does not erase the underlying Dwelling Tax debt.
Local Unit Treasury
The Local Unit Treasury (LUT) is the second lever the Party Secretary has to ensure the LUO can be met. In good weeks, a Local Unit can build up its LUT. In bad weeks, the LUT can be used to cover obligations. The LUT can also be used to fund improvements and services that benefit the Local Unit. Spending the LUT for anything apart from these purposes is considered misappropriation of funds, and can be fined by 0,50 gc. Even when fined, the Party Secretary will still be liable to return all misappropriated funds to the Party.
The Local Unit Treasury has a capacity limit of 2,00 gc in coins and a landscrip capacity equal to the landscrip part of the LUO for that week. Should it ever exceed either of these limits, the excess must be remitted to the Party as part of the next LUR payment.
Local Unit Remittance
Each week, the Party Secretary must pay the Local Unit Remittance (LUR) to the Party by the Binjing Central Tax Deadline. The LUR is what the Local Unit pays to the Party to settle its LUO.
The LUR may exceed the LUO both in coins and in landscrips. If this is the case, any coin excess is considered a LUR Surplus, and 50% of the surplus is awarded back to the Party Secretary. This is a way for Party Secretaries to earn some extra income for their efforts.
The LUR payment is a delicate affair.
- First, the Party Secretary must collect all Dwelling Tax payments from residents. The total amount actually collected is called the Collected Dwelling Tax Sum (CDTS). This can be lower than the sum of all Dwelling Taxes that were set if some residents did not pay, or did not pay in full.
- This CDTS can then be adjusted by moving money between the CDTS and the LUT. A positive adjustment means money is taken from the LUT to increase what can be remitted; a negative adjustment means excess money is moved into the LUT. Any adjustment must obey all of the following rules:
- The LUR must settle the LUO for the week.
- After paying the LUR, the LUT must be within its capacity limits.
- Any landscrips that would expire before the next LUR payment must be remitted to the Party as part of the current LUR. The adjustment made is called the LUT–LUR adjustment. The final amount after adjustment is the Local Unit Remittance (LUR).
- Finally, the Party Secretary pays the LUR to the Party.
The CDTS added to the LUT–LUR adjustment must always equal the final LUR paid. The resident list in the LUL is used to calculate the LUO for the following week.
Local Unit Ledger
As part of the LUR, the Party Secretary must also submit a Local Unit Ledger (LUL). This ensures there is an audit trail for Local Unit finances, and is used to determine the LUO for the following week.
The Local Unit Ledger must be named LUL W[week number] [Local Unit Name], e.g. LUL W12 LU-1, and contain the following information:
- a list of all residents currently living in the Local Unit;
- for all residents who owed a Dwelling Tax that week:
- if they paid their dwelling tax in full, the amount they paid; or
- if they did not pay their dwelling tax in full, the amount they owed, the amount they paid, and an optional note explaining why they did not pay in full and what enforcement actions were taken;
- the total Collected Dwelling Tax Sum (CDTS);
- any LUT–LUR adjustment made (if any);
- the final LUR paid; and
- the final LUT balance after paying the LUR.
Fines and Penalties
Not following any of the procedures outlined on this page can result in a 0,35 gc fine, except:
- if a Party Secretary does not pay the LUO in full and on time, they can be fined 0,50 gc; or
- if a Party Secretary misappropriates funds from the CDTS or the LUT, they can be fined 0,50 gc and will be liable to return all misappropriated funds to the Party.
If a Local Unit does not have a Party Secretary, the Minister of Administration will be the acting Party Secretary and will be responsible for ensuring the Local Unit meets its financial obligations. However, they will not be liable for any shortfalls of the LUR.