SCOTT COUNTY MUST REPAY NEARLY $400,000 IN TAXES

BENTON -- Scott County, already suffering from low sales tax revenue, recently received notification from the Missouri Department of Revenue advising they would have to repay nearly $400,000 to New Madrid County for taxes collected at Wal-Mart and remitted to the wrong county.

"This makes our bad financial condition even worse," said Martin Priggel, Scott County presiding commissioner.

Although most residents notice property tax more, it is actually sales tax that pays for most of the county's expenses in the general revenue fund. The operation of the courthouse and the arrest, boarding and prosecution of prisoners are the major expenses paid for from this fund.

"When this was brought to my attention, I was informed that the sales tax collections from Wal-Mart had been filed in Scott County with the Missouri Department of Revenue for the past two years and seven months," said Clyde M. Hawes, New Madrid County presiding commissioner.

"When Wal-Mart was notified that they had filed in the wrong county, they immediately filed a corrected return with the Missouri Department of Revenue," said Hawes. "This is certainly no reflection on any officials from Scott County. The Missouri Department of Revenue will determine as to when New Madrid County will be reimbursed." Although officials were notified there was some sort of problem in the tax disbursement, Scott County did not receive official notification with the dollar amount involved until early this month.

The document from the Missouri Department of Revenue Tax Administration Bureau advised that Wal-Mart had remitted sales tax to Scott County in error and would amend sales tax returns from February 1997 to July 1999.

The total for the period is $396,466.41, or an average of more than $13,000 over 30 months.

Counties are the recipients, but they are not directly involved in the collection and disbursement process.

"We depend on the retailer to show information correctly on the report to the Department of Revenue and the Department of Revenue to send it to us," explained Rita Milam, Scott County clerk.

Also, the deposit documentation received by the treasurer for the sales tax does not itemize the amount, but shows just one lump monthly sum from sales tax.

Currently, Scott County receives a half-cent on each dollar spent on retail items in Scott County.

In addition to having a comparatively low sales tax rate for the region, commissioners noted that most of the retail stores frequented by Scott County residents are not in the county, which means their sales tax ends up going to the counties where they do shop.

Everything up to the south side of Murray Lane in Sikeston is in New Madrid County.

Walter Bizzell, Scott County commissioner said, "We are the only county in the Bootheel that does not have a Wal-Mart store." Reserves have been drawn upon to pay the bills for some time now, and this additional debt to repay is "going to add a greater financial burden," said Milam.

Scott County officials agreed this situation will make a sales tax initiative being considered for April even more critical.