Bernero's City Administrative Account takes in another
$8,500 in last half of 2014
February 7, 2015
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Mayor Virg Bernero spent $441 on juice
in the last half of 2014. The juice was purchased
at
Juice Nation,
111 Washington Square in Lansing. I know because that is
what he reported to the IRS:
Date |
Amount |
|
|
7/1/2014 |
6 |
7/2/2014 |
10 |
7/7/2014 |
12 |
7/8/2014 |
17 |
7/9/2014 |
12 |
7/10/2014 |
8 |
7/15/2014 |
12 |
7/16/2014 |
11 |
7/16/2014 |
5 |
7/17/2014 |
10 |
7/21/2014 |
6 |
7/23/2014 |
6 |
7/31/2014 |
10 |
8/6/2014 |
8 |
8/6/2014 |
12 |
8/11/2014 |
18 |
8/26/2014 |
6 |
9/2/2014 |
6 |
9/3/2014 |
19 |
9/5/2014 |
14 |
9/18/2014 |
6 |
9/19/2014 |
6 |
10/9/2014 |
6 |
10/10/2014 |
13 |
10/14/2014 |
6 |
10/15/2014 |
6 |
10/15/2014 |
13 |
10/22/2014 |
5 |
10/23/2014 |
30 |
10/27/2014 |
6 |
10/28/2014 |
6 |
11/4/2014 |
6 |
11/6/2014 |
6 |
11/18/2014 |
12 |
11/20/2014 |
13 |
11/20/2014 |
6 |
11/25/2014 |
20 |
11/26/2014 |
7 |
12/5/2014 |
34 |
12/12/2014 |
26 |
TOTAL: |
$441 |
|
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That $441 wasn't his own money,
of course. It came out of the City Administrative Account, the
mayor's 527 account. In all, he spent $10,397 in 6 months.
The entire list of
expenditures for that period is
here. Contributions to the account totaled $8,500:
Blue Cross Blue Shield's $2000
contribution brings its total since 2006 - when the fund was
established - to $24,500, second only to
the Christman Company at $27,000. The E. T. McKenzie Company is
sixth on
the list at $12,500.
Bernero has a balance in his City
Administrative Account of $46,846. (He also has $50,132 in his
mayoral campaign account.)
I compiled this data from reports for
the third and fourth quarters of 2014. You can see them for yourself
by going to
this page on the IRS' website. Check the box for Form 8872. In the box for Employer Identification Number (EIN), enter
20-3950788 and click Submit Basic Search. Then click "City Administrative Account".
Section 527 of the U.S. Tax Code says that political
organizations can collect unlimited contributions, and they don't
have to pay income tax on the amount of those contributions that are
spent on "exempt functions:"
The term “exempt function” means
the function of influencing or attempting to influence the
selection, nomination, election, or appointment of any
individual to any Federal, State, or local public office or
office in a political organization, or the election of
Presidential or Vice-Presidential electors, whether or not such
individual or electors are selected, nominated, elected, or
appointed. Such term includes the making of expenditures
relating to an office described in the preceding sentence which,
if incurred by the individual, would be allowable as a deduction
under section 162 (a).
Since the first sentence above
addresses election activities, it doesn't apply to Bernero's City
Administrative Account. Campaign finance is governed by state
campaign finance law. For campaign contributions and expenditures,
Bernero has a political action committee (PAC) called "Virg Bernero
for Lansing" that submits reports to the Ingham County Clerk.
It is the second sentence that applies
to the City Administrative Account. It applies to expenditures by an
elected official relating to his office - expenditures that "would
be allowable as a deduction under section 162 (a)." Section
162 is referred to specifically under "purpose" on the
Form 881, Political Organization Notice of
Section 527 Status that Bernero filed with the IRS:
To collect and administer funds to
pay expenses incidental to the holding of the Office of Mayor for
the City of Lansing, which if incurred by Mayor Virgil Bernero,
would be allowable as a deduction under Section 162 of the Code; To
sponsor and organize activities in connection with the Lansing
mayoral inauguration, and other acts incidental thereto; and To
organize and conduct activities in connection with the Lansing
mayoral transition to Lansing Mayor-Elect Bernero, and other acts
incidental thereto.
Section 162 applies to trade or business expenses:
There shall be allowed as a
deduction all the ordinary and necessary expenses paid or
incurred during the taxable year in carrying on any trade or
business, including—
(1) a reasonable allowance for
salaries or other compensation for personal services
actually rendered;
(2) traveling expenses
(including amounts expended for meals and lodging other than
amounts which are lavish or extravagant under the
circumstances) while away from home in the pursuit of a
trade or business; and
(3) rentals or other payments
required to be made as a condition to the continued use or
possession, for purposes of the trade or business, of
property to which the taxpayer has not taken or is not
taking title or in which he has no equity.
Note that juice is not included, nor
are any meals consumed other than while travelling. In addition to
the Juice Nation expenditures, Bernero spent $2,136 on local meals:
Recipient |
City |
Purpose |
Date |
Amount |
Culver's of Lansing |
Lansing |
Meals |
7/1/2014 |
8 |
Biggby Coffee |
Lansing |
Meals |
7/9/2014 |
3 |
The Waterfront Bar and Grill |
Lansing |
Meals |
7/10/2014 |
30 |
The Waterfront Bar and Grill |
Lansing |
Meals |
7/18/2014 |
20 |
The Waterfront Bar and Grill |
Lansing |
Meals |
7/21/2014 |
62 |
The Waterfront Bar and Grill |
Lansing |
Meals |
7/24/2014 |
48 |
Tavern on the Square |
Lansing |
Meals |
7/28/2014 |
47 |
Mitchell's Fish Market |
Lansing |
Meals |
7/30/2014 |
166 |
Soup Spoon Cafe |
Lansing |
Meals |
7/30/2014 |
30 |
The Waterfront Bar and Grill |
Lansing |
Meals |
8/1/2014 |
51 |
The Waterfront Bar and Grill |
Lansing |
Meals |
8/5/2014 |
84 |
Soup Spoon Cafe |
Lansing |
Meals |
8/7/2014 |
25 |
Steakhouse Philly Bar & Grill |
Lansing |
Meals |
8/19/2014 |
19 |
Lansing Airport |
Lansing |
Meals |
8/20/2014 |
4 |
Mediterranean Grill |
Lansing |
Meals |
8/20/2014 |
15 |
Mediterranean Grill |
Lansing |
Meals |
8/26/2014 |
48 |
Detroit Frankie's Wood Fire Pizza |
Lansing |
Meals |
8/27/2014 |
15 |
Red Haven Restuarant |
Okemos |
Meals |
9/3/2014 |
422 |
Mediterranean Grill |
Lansing |
Meals |
9/11/2014 |
30 |
Cravings Gourmet Popcorn |
Lansing |
Meals |
9/20/2014 |
25 |
The Waterfront Bar and Grill |
Lansing |
Meals |
9/25/2014 |
52 |
Biggby Coffee |
Lansing |
Meals |
10/10/2014 |
4 |
Restaurant Mediteran |
Lansing |
Meals |
10/14/2014 |
154 |
Restaurant Mediteran |
Lansing |
Meals |
10/14/2014 |
37 |
Cravings Gourmet Popcorn |
Lansing |
Meals |
10/17/2014 |
32 |
Eden Rock Restaurant |
Lansing |
Meals |
10/29/2014 |
28 |
Soup Spoon Cafe |
Lansing |
Meals |
11/3/2014 |
13 |
Thai Village |
Lansing |
Meals |
11/5/2014 |
26 |
TABOOLI |
Lansing |
Meals |
11/6/2014 |
21 |
CRAVINGS GOURMET |
OKEMOS |
Meals |
11/7/2014 |
34 |
Restaurant Mediteran |
Lansing |
Meals |
11/10/2014 |
20 |
TROPPO |
Lansing |
Meals |
11/24/2014 |
84 |
Thai Village |
Lansing |
Meals |
11/26/2014 |
26 |
Thai Village |
Lansing |
Meals |
11/28/2014 |
12 |
Restaurant Mediteran |
Lansing |
Meals |
12/3/2014 |
24 |
EDMUND'S |
Lansing |
Meals |
12/4/2014 |
108 |
Soup Spoon Cafe |
Lansing |
Meals |
12/5/2014 |
24 |
Restaurant Mediteran |
Lansing |
Meals |
12/8/2014 |
19 |
Thai Village |
Lansing |
Meals |
12/8/2014 |
25 |
EDMUND'S |
Lansing |
Meals |
12/11/2014 |
17 |
FIESTA CHARRA |
EAST LANSING |
Meals |
12/18/2014 |
9 |
EDIBLE ARRANGEMENTS |
Lansing |
Meals |
12/22/2014 |
165 |
Restaurant Mediteran |
Lansing |
Meals |
12/22/2014 |
50 |
|
|
|
TOTAL: |
$2,136 |
And what about that $150 paid to Sparrow Home Services for
"medical" (9/9/2014)? And that $500 paid to McLaren Health for "healthcare"
(10/30/2014)?
The entire list of
expenditures is
here.
I've been keeping track of Bernero's
527 account since 2009, providing complete lists of contributions
and expenditures since the account was established in 2006.
The full story is here. In 2012, I submitted a complaint to the
IRS using a
form on its website. I did get a
reply, but have heard nothing since. As
understaffed as the IRS is, these matters are unlikely to get
much attention.
Send comments to
stevenrharry@gmail.com.
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