[hchutch]

I'd go for a half-and-half approach.

Half of any surplus is used for a rainy-day fund, the other half is rebated to the taxpayers as a percentage of that they paid.

[daviddennis]

I think what I would probably do is decide on an amount we want for the reserve, and then refund any amounts coming in over that number.

However, there should be a provision where the reserve is increased instead of refund if the cost of processing the refunds is is too similar to their amount. If it costs $10 to process a refund, sending $10 checks isn't going to do any of us any good; instead, add $20 per person to the reserve.

It would probably be best to make the refund a credit on the current year's taxes - maybe it could be reverse-withheld from paychecks.

D