Fines and Fees Reporting Act

Most municipalities allow law or code enforcement officers to cite residents for violations that may result in fines. Unfortunately, some use this power to generate revenue rather than solely to protect public safety and property. Frequently, this burden falls unequally on lower-income residents. 

“Taxation by citation” threatens trust in local governments, which can have disastrous consequences. Following the 2014 death of Michael Brown in Ferguson, Missouri, the U.S. Department of Justice found the city targeted minorities to raise revenue. This led to general “distrust and resentment” of government that ultimately led to the unrest that caused personal injuries and almost $5 million in property damage. 

Abusing fines and fees for revenue is widespread. A Governing report identified nearly 600 jurisdictions where fines and fees accounted for more than 10% of general fund revenues. Moreover, such abuse distorts law enforcement priorities and exploits the least fortunate, potentially stoking the flames of civil unrest. 

What can state legislators do? 

The Institute for Justice offers the Fines and Fees Reporting Act, a bill designed to help policymakers better understand how fines and fees are imposed and collected. The model establishes a comprehensive reporting system that captures every assessed fine and fee, along with the relevant circumstances. This information is reported annually to legislators and made publicly available, allowing the state to track all fines and fees activity.