Tax Commission eyes pawnshops

The issue began during an ongoing audit of a large pawn business. Johnson said while going through the audit, a state auditor realized that the pawnshop should be collecting sales tax when customers return to pay off their loan and get their items back.

Johnson said when the pawnshop audit is complete, the commission may collect at least one year in back sales tax.

However, legislators say the commission's interpretation of the tax code is not what the Legislature intended. They have asked the commission to put the audit on hold until the tax code can be changed during the upcoming legislative session.

Tuesday's meeting ended with an impasse.

Johnson said he did not think it was appropriate for legislators to ask the commission to put off an audit, adding the commission cannot make exceptions due to political pressures.

Stephenson responded by saying because the single audit could impact the entire industry, the committee thought it prudent to wait until the Legislature addressed the issue.

Johnson said the Tax Commission will do what it feels necessary to fulfill its duties. The committee decided to let its request to stop the audit stand.

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