Arizona Department of Revenue

CLIFTON — A dispute concerning overpaid sales tax revenue reached a mostly amicable conclusion earlier this month.

Working with the Arizona Department of Revenue, the Town of Clifton was able to find a schedule of repayment the town can live with.

“Last month, the town was notified by the Arizona Department of Revenue that Clifton was overpaid $56,490.31 in sales tax revenue in April 2015,” Town Manager Ian McGaughey told the Copper Era. “ADOR required that that amount be repaid, and the town asked for that repayment to be spread out over three months. I was notified that ADOR will allow it to be spread out over 60 days, citing our existing IGA (Intergovernmental Agreement) with them as the reason for that specific time frame. However, the way the revenues are received means the impact will be felt roughly from April 1 through June 20 — close to the three months we asked for.”

While a mostly successful negotiation between the two entities was reached, Clifton was assessed an additional 4 percent interest charge for the money (roughly $400) as it benefited from the revenue during the period.

“Despite my efforts, I was unsuccessful in getting that interest waived. The original taxpayer who was incorrectly charged the town sales tax by the vendor receives that interest, since they were out of funds for the two-year period. I want to reiterate that the town was not at fault here — it was the vendor who made the error,” McGaughey said.

Representatives from the ADOR stressed a willingness to work with Clifton during the incident to find a solution to the problem and spoke with the Copper Era about the error, which arose from the vendor over reporting on the Transaction Privilege Tax.

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