The Alexandria, VA city council wants to impose a steep new tax on payday lenders according to this Washington Post article.   Advance America, the nation’s largest payday lending company is threatening to sue the city if it takes this step.  From the article:

Under the Alexandria proposal, payday and car-title lenders would face a business license tax of 58 cents for each $100 in gross receipts, up from 35 cents for each $100 of gross receipts, which is the general rate for financial services firms. The tax would generate an estimated $13,000 annually, which the city wants to devote to consumer financial education.

“I think it is a good symbolic gesture,” said Alexandria council member Rob Krupicka (D), but he said he is worried about the potential cost of litigation by payday lenders. “I don’t want to go down the path where we are paying more in legal fees than we are generating in revenue,” he said.