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Detroit attempts to increase revenue with income tax amnesty plan

Detroit Mayor Dave Bing
Kate Davidson
Michigan Radio
Detroit Mayor Dave Bing

On Tuesday, the city of Detroit will begin an income tax amnesty program in an attempt to recoup lost revenue.

The program will allow individuals and companies to pay off outstanding debts without penalty if done so before February 16.

Matt Helms of the Detroit Free Press has more:

“We are encouraging any individual or company that has failed to pay income taxes to the City of Detroit to take advantage of this program,” Bing said. “Now is the time to save money and settle your tax debt with the city.” Bing officials announced late last year they would set up the amnesty deal. Unions and critics on the City Council had questioned why Bing’s administration wasn’t doing more to collect on unpaid debts to help Detroit battle its way out of chronic deficits that prompted Gov. Rick Snyder to appoint an emergency financial review team to assess Detroit’s fiscal crisis, a move that could lead to deeper state intervention. Bing’s office said the city expects to raise $4 million through the income tax amnesty program, part of a move the administration believes may ultimately bring in $50 million to city coffers. The city also will move this year to collect on delinquent fees for airport services, solid waste trash collection services, business licenses, personal property taxes on business equipment and parking fines, as well as selling abandoned properties and vehicles.

Bing said that after the amnesty period, the city would take a more aggressive approach to debt collection.

Learn how to pay your unpaid taxes here.

- Jordan Wyant, Michigan Radio Newsroom

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