Local Unit Finances
Party Secretaries (PS) are responsible for setting and collecting the Dwelling Tax on behalf of the Party in their Local Units (LUs). This tax is one of the most important sources of revenue for the Party.
Make sure to read the Taxes in Binjing page for an overview of all taxes in Binjing.
Overview
To understand how local unit finances work, it is important to understand some terminology.
- Local Unit Obligation (LUO): The amount of money a Party Secretary must pay to the Central Government each week.
- Dwelling Tax (DT): A tax levied by the Party Secretary on the residents of their LU, on behalf of the Party, to help meet their LUO.
- Collected Dwelling Tax Sum (CDTS): The sum of all DTs actually collected by the Party Secretary in their LU, excluding any DTs not actually paid.
- Local Unit Treasury (LUT): The treasury a Local Unit keeps for its use, or the money therein.
- Local Unit Remittance (LUR): The amount of money a Local Unit actually paid to the Central Government.
- LUT-LUR Adjustment: The amount of money the Party Secretary takes from or adds to the CDTS, to make up their final LUR.
- Local Unit Ledger (LUL): A ledger the Party Secretary must submit each week, with an overview of collected taxes.
In summary, the Party Secretary must pay a LUO each week. To meet their LUO, the Party Secretary sets a Dwelling Tax for each resident in their LU. The sum of all DTs actually collected is the CDTS. The Party Secretary can bolster their CDTS with money from the LUT, or add excess money to the LUT, to make up their final LUR. This adjustment is called the LUT-LUR Adjustment.
Local Unit Obligation
Each Party Secretary is responsible to pay a Local Unit Obligation (LUO) to the Central Government. The LUO consists of a fixed part, also known as the Base LUO, and a variable part, also known as the Variable LUO.
- The Base LUO changes for each LU, but otherwise does not change.
- The Variable LUO is equal to 0.05 gc per resident in the LU, on the day the LUO is due.
Part of the LUO can be paid with land scrips (“Reducible Part”), at the rate of 1 land scrip per 0.03 gc. The rest of the LUO must be paid in coins (“Irreducible Part”).
| Local Unit | Base LUO | Variable LUO | Reducible (gc) | Reducible (ls) |
|---|---|---|---|---|
| LU-1 | 2.55 gc | + 5 cc / resident | 2.55 gc | 85 ls |
| LU-2 | 2.55 gc | + 5 cc / resident | 2.55 gc | 85 ls |
| LU-3 | 3.30 gc | + 5 cc / resident | 3.30 gc | 110 ls |
| LU-5 | 2.55 gc | + 5 cc / resident | 2.55 gc | 85 ls |
| LU-6 | 2.55 gc | + 5 cc / resident | 2.55 gc | 85 ls |
| LU-V | 1.35 gc | + 5 cc / resident | 1.35 gc | 45 ls |
| LU-N | 2.25 gc | + 5 cc / resident | 2.25 gc | 75 ls |
Dwelling Tax
To meet their LUO, Party Secretaries can set the Dwelling Tax for each resident in their LU. The Dwelling Tax has two components: the irreducible part, and the reducible part. The Party Secretary may freely set both parts, but the irreducible part must be at least 5 cc.
Residents will pay the Dwelling Tax to their LU each week, on a deadline set by the Party Secretary. We advise Party Secretaries to set this deadline at least one day before the Binjing Central Tax Deadline, to ensure they have enough time to collect the Dwelling Taxes, manage their finances, and pay their LUO on time.
Not all residents will pay their Dwelling Tax on time, in full, or at all. If a resident does not pay their Dwelling Tax, you may issue a 35 cc fine. Even after you issue a fine, they are still liable to pay the missed payment. To learn how to issue fines legally, or if you have issues with a resident not paying their Dwelling Tax, contact the Minister of Administration. They will be able to help you out.
A second option you have is to evict the resident. To learn how to evict a resident legally, read the Citizenship and Residency in Binjing page. When you have evidence of a missed payment, the eviction period is reduced to 5 days.
The actual sum of all Dwelling Taxes collected in an LU is called the Collected Dwelling Tax Sum (CDTS). This is the amount of money you actually have to meet your LUO.
Paying the LUO
The actual amount of money you pay to the Central Government is called the Local Unit Remittance (LUR). It is important to understand the distinction between the CDTS, the LUR, and the LUO.
- The CDTS is the amount of money you actually collected from your residents.
- The LUR is the amount of money you actually pay to the Central Government.
- The LUO is the amount of money you are required to pay to the Central Government.
LUT-LUR Adjustment
Party Secretaries can freely take money from the LUT, or add money to the LUT, to add to the CDTS, to make up their final LUR. This amount is called the LUT-LUR Adjustment. A positive LUT-LUR Adjustment means you are taking money from the LUT to add to the CDTS. A negative LUT-LUR Adjustment means you are adding money to the LUT from the CDTS. When the LUT-LUR Adjustment is 0, the CDTS should equal the LUR exactly.
This is especially useful when the CDTS is not enough to cover the LUO. In that case, you can take money from the LUT to make up the shortfall. If the CDTS is more than enough to cover the LUO, you can add the excess money to the LUT, although you do not have to.
When making your LUT-LUR Adjustment, make sure to follow the following rules:
- Your LUR must be at least equal to your LUO. Any shortfall must be made up with a positive LUT-LUR Adjustment (if possible).
- Your LUT must not exceed 2× your Base LUO. Any money in excess must be added to the LUT-LUR Adjustment.
LUR Surplus
If the LUR exceeds the LUO, the excess is called a LUR Surplus. This can happen when the CDTS is more than enough to cover the LUO, or when you make a negative LUT-LUR Adjustment. The Central Government will award half the LUR Surplus to the Party Secretary, and add the other half to the Provincial Treasury.
Local Unit Ledger
To make sure you are managing your finances correctly, every week while submitting your LUR, you must also submit a Local Unit Ledger (LUL). This must include the following information:
- An overview for of all collected Dwelling taxes:
- For each resident, the actual DT collected.
- Separate how much was paid in coins, and how much was paid in land scrips.
- For each resident, if their collected DT was less than their set DT, the intended DT and a note indicating it was not (fully) paid.
- The total Collected Dwelling Tax Sum (CDTS).
- For each resident, the actual DT collected.
- If you made a LUT-LUR Adjustment, the amount and whether it was positive or negative.
- The final Local Unit Remittance (LUR).
- The amount of money in the Local Unit Treasury (LUT) after the LUR was paid.
The LUL can be used by the Central Government to audit the finances of the Party Secretary, or any other residents of the LU.
Penalties
The Central Government can issue the following penalties to Party Secretaries, if they do not manage their finances correctly:
- Not paying the LUO in full or in time can result in a fine of 0.35 gc. The Party Secretary is still liable for paying the missed LUO.
- Failure to submit a Local Unit Ledger (LUL), or submitting an incorrect LUL, can result in a fine of 35 cc.
- Directing any part of the CDTS to anything apart from a LUT-LUR Adjustment or the LUR is considered misappropriation of funds, and is punishable by a fine of 50 cc. The Party Secretary will be liable to return all the misappropriated funds to the Central Government.
Local Unit Treasury
The Local Unit Treasury is the treasury a Local Unit keeps for its use. It can be used to pay for costs that benefit the LU, such as modifications to the building, services to the residents, or LUT-LUR Adjustments.
Using the LUT for anything apart from these purposes is considered misappropriation of funds, and is punishable by a fine of 50 cc. The Party Secretary will be liable to return all the misappropriated funds to the Central Government.
Vacant Party Secretary Positions
If the Party Secretary position in a Local Unit is vacant, the Minister for Administration will temporarily take over the financial duties of the Party Secretary 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 liable for any shortfalls of the LUR, but will be liable for any other penalties.