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Show Sales tax City t o lose some, but will gain more The Utah Tax Commission has been requested by Vernal City to evaluate 55 businesses to determine if their local sales tax is being distributed from the state to the proper entity. The evaluation, which will go back three years, could mean the sales tax from the businesses will go to other entities en-tities other than Vernal City, but city officials feel that taxes from Smith's Food King, which have been going to Uintah County, will more than make up the difference. Harley Hales, Vernal City finance director, said he stumbled onto the tax inequity when the city came up $400,000 short in sales tax because of the slump in the local economy. Attempting to find out where the shortage was coming from, Hales said he conversed with other city officials in the state in similar situations. Hales said he learned that tax breakdown from each business could be obtained from the State Tax Commission, Com-mission, only upon request. From the tax breakdown, the city determined that from the past six quarters, the State Tax Commission has been giving sales tax from Smith's Food King in Vernal City to Uintah County. Smith's local sales tax during the six quarters is estimated between $130,000 to $180,000. Vernal City will be reimbursed the Smith's sales tax, while Uintah County Coun-ty will be shorted the same amount. A preliminary audit by Vernal City shows that 28 other businesses have been paying sales tax to Vernal City and are now in the Naples area, and 27 business' tax should have gone to Uintah County. The sales tax from Smith's will outweigh the other sales tax the city will lose from the other businesses, Hales said. "The tax commission said if they check one business tax, we should check all even if it may go against the city," Hales said. |
