What happens to the handling fee if a city does not report timely?

• A. Cities may not keep the handling fee but must remit it to the State.
• B. Cities may keep the handling fee.
• C. The State keeps the handling fee.
• D. The handling fee is forgiven.

Answer: (A)

When reporting is late, the city cannot keep the handling fee; it must be remitted to the State. The fee is tied to processing handled at the state level, so delaying reporting means the city is required to forward those funds to the State to ensure proper accounting and distribution. Keeping the fee would divert funds from the state, and forgiving the fee would remove a necessary consequence of late reporting. The established approach is that the city remits the fee to the State.