Counties paying back errant taxes

Five counties in Utah that are responsible for repaying nearly $3 million in taxes that were mistakenly sent to them will have paid off $854,550 of the total by July.

Utah County has already sent its share of $451,324 to the Utah State Tax Commission, and Weber and Cache counties have decided to forgo their monthly tax distribution from the tax commission to pay off their share in the next few months.

Salt Lake and Davis counties have opted to have respective amounts of $41,450 and $18,525 withheld from their monthly distributions each month over the next three years, though they have the option of paying their final amount earlier if possible.

For Davis County, $18,525 is just under half of what the county normally receives in sales tax revenue in a month. For Salt Lake County, $41,450 is about 3 percent of its monthly sales tax revenue.

The five counties landed in the unfortunate spot of repaying taxes that should have gone to cities when telecommunications companies erred in the way they reported taxes to the tax commission. An incorrect designation meant that counties got extra money and cities didn't get enough.

The misreporting went on for long enough, said Davis County Clerk/Auditor Steve Rawlings, that Davis County is responsible for coughing up $652,522. That payment would have wiped out the county's fund balance if it had been demanded immediately.

Salt Lake County is responsible for sending $1.46 million back to the tax commission.

It took some negotiating among the counties, the Utah Association of Counties and the tax commission to come up with the gradual repayment plan, said Charlie Roberts, tax commission spokesman.

Rawlings said counties accepted the agreement, but the experience is trying because it's difficult to pass up three years of tax revenue you thought you had.

E-MAIL: jdougherty@desnews.com