The city of Blytheville failed to pay sales taxes of $147,632, collected in 2013 on sanitation fees and trash pickup, according to a new report from Arkansas Division of Legislative Audit.
"City officials stated that the sales taxes have not been remitted since 2004," the 2013 audit report reads. "The City informed us they contacted the Department of Finance and Administration in attempt to settle this outstanding debt."
Last month, Blytheville Finance Director John Callens told the Finance and Purchasing Committee the Department of Finance and Administration has asked him to compile information on the unpaid trash pickup and sanitation excise from the past six years.
The city has frozen the IRS Payment Account, which has $341,779.40. To use that money for the excise taxes, there would have to be a special election rededicating the money. In 2004, the state passed an excise tax on trash pickup and sanitation and the city collected it, but did not send in all of the tax money.
"It would be passed over from the water company to the city," Callens said recently. "When it was passed over, they classified it as miscellaneous revenue. It was, I guess, communication got lost on what was supposed to be done with the money. When it gets to the payables, it's not listed as payables. All they see is a miscellaneous revenue brought over by Blytheville Waterworks, which they would assume is just a payover because quite often you get a payover from the water company."
He has said the Yarbro excise taxes were paid because they were paid directly; also paid were excise taxes for Thunder Bayou Golf Links, etc.
Callens, who discovered the excise tax problem, has said he doesn't believe there will be any more tax issues pop up because he's quizzed DF&A and checked on all possible taxes.
The 2013 audit report says: "Our audit procedures indicated that the offices of Mayor, Treasurer, Clerk, District Court Clerk, and Police Chief were in substantial compliance with Arkansas fiscal and financial laws. Noncompliance with state law and accepted accounting practices was noted in the office of Finance Director."
The excise tax was the issue listed under the Finance Director section of the audit.
mbrasfield@blythevillecourier.com