Good news for Detroit residents and businesses that have fallen behind on their city income taxes: The City of Detroit is lifting all late payment penalties for those who pay off delinquent taxes between Jan. 22 and Feb. 16 this year.
Mayor Dave Bing On Wednesday announced the move as part of his revenue enhancement initiative, estimating the amnesty program will generate $4 million in revenue for the cash poor city.
“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,” said Bing. “Now is the time to save money and settle your tax debt with the City.”
The offer is part of a series of revenue-targeted measures including collecting unpaid fees for airport services, solid waste services and business licenses; collecting delinquent personal property taxes on business equipment and parking fines; and selling unused property and abandoned vehicles. Together the initiatives are estimated to save Detroit $50 million in 2013.
Under the City’s tax code, all Detroit residents who earn more than $600 in a calendar year are required to pay income taxes regardless of what city they work in.
Further, all non-residents who conduct business in Detroit and earn more than $600 in a calendar year are required to pay income taxes to the City regardless of where their employer is located.
This applies to all visiting workers, including sales personnel, delivery drivers, physicians, etc.
The Mayor also issued a reminder to those who don’t take advantage of the amnesty program. “The City will not be writing off delinquent balances,” Bing said. “After the amnesty period, we will take more aggressive collection actions including providing delinquent reports to credit agencies.”
To take advantage of the program, individuals and companies must complete income tax returns for the eligible years and provide employer-generated appreciate tax forms such as W2s or 1099s.