City runs up postage bill to collect a tiny tax

Receiving a letter by certified mail --- with $5.21 worth of postage stamps affixed --- from the local tax collector with a “final notice and demand for payment” message would shake up most people.

But when Dr. Phil Kazanji, who operates a medical center in Brighton, Mich., read it, he laughed.  Grumpy Editor did, too, on learning about it.

Neatly applied on the envelope were 12 Gerald Ford 41-cent stamps and one Elvis Presley 29-cent stamp.

The letter also mentioned “this is your last opportunity to satisfy these taxes before the city initiates legal action against you or your company.”

The amount being sought: 51 cents.

Following the thinking of many government agencies, spending $5.21 plus envelope, printing and handling, is considered a good deal to get half a buck in return.

“This is the most ridiculous thing a government agency would do,” Dr. Kazanji is quoted by writer Jim Totten in the Livingston County Daily Press & Argus, Howell, Mich. 

The mailing came from the city treasurer’s office.

“No matter how small, we can’t ignore it or waive it,” said Dave Gajda, city finance director, firmly going by the book --- and with an abundance of taxpayer-paid stamps at hand.  He pointed out under state law, the city does not have the authority to write off any amount of unpaid taxes.

Apparently a $158 check was written for a $158.48 tax bill.  That made it 48 cents short.  With three cents added, stemming from a six percent penalty, the unpaid amount with penalty expanded to 51 cents.

The doctor said a simple phone call would have been enough and he would have been happy to come in to pay the 51 cents.