The Ellis County Press: State rules city must refund sales tax

State rules city must refund sales tax
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Editor on 04/08/2010 14:37:00


MEGAN GRAY
The Ellis County Press
WAXAHACHIE - The State Comptroller's Office issued a ruling to the city of
Waxahachie stating they would have to refund $310,044.96 in collected sales tax.
According to City Manager Paul Stevens, this was sales tax paid by a customer
who believed they were tax exempt but agreed to pay the sales tax until they
received a ruling from State Comptroller Susan Comb's office. Since the
comptroller's office did rule in the customer's favor, the money must be
returned.
The money, which covered a period of about one year, will be paid back over one
year.
Who the money is going to is uncertain.
"The Comptroller's office won't divulge any details about who the customer was.
"We have to assume it was one of our industries or a customer of theirs," said
Stevens.
In other news, the city reported being just under a 1 percent increase in
budgeted sales tax collections.
With the adjustment, the city is now 2 percent below budget.
"Although this came as a shock to us, we aren't anticipating making any further
budget cuts," said Stevens.
"For this fiscal year, we have had some unexpected revenue in other categories
and expenditures are in line, so we don't think it is necessary to make any
adjustments."