Bollinger County says it won't change sales tax structure after critical audit

Bollinger County annually collects hundreds of thousands of dollars in sales taxes that appear to exceed legal limits, the Missouri State Auditor's office reported in a recent review of the county's finances.

In the report, which repeats and expands on findings from an audit issued in 2004, the auditor's office noted that the county has repeatedly used a state law allowing a countywide sales tax of up to one-half percent. County voters have approved three different sales taxes under the law, totaling 1.125 percent.

An attorney general's opinion from 1989 said counties are allowed to use the tax law multiple times, but that the total amount of the tax must be no more than one-half percent.

"The county needs to review the various sales tax levies to determine which are valid," the audit report states.

The taxes, which raised a combined $670,000 in 2007, include a half-cent sales tax approved by voters in 1989, a one-eighth cent sales tax approved by voters in 2006 for senior citizen services and a half-cent tax originally approved in 2003 and renewed in 2007. Bollinger County also levies a one-half cent sales tax authorized by a different section of state law.

In the response to the state auditor, the county commission indicated that it would ignore the questions raised about the legality of the taxes. "The citizens have voted for and passed this sales tax; therefore, we do not plan to attempt to change it."

Along with collecting questionable sales taxes, the county has also collected too much in property taxes, the auditor's report concludes. The county is required to reduce property taxes as an offset to revenue from a half-cent general revenue sales tax. In addition, the sales tax approved in 2003 included a voluntary property tax reduction.

Over the four years ending Dec. 31, 2007, the county collected between $51,943 and $120,084 more than it should have if the correct property tax reduction had been used, the audit report states.

In its response, the county commission said it would instruct County Clerk Diane Holzum to recalculate the required property tax reduction and make clear in the future which required reductions are being made.

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