Granby lands $800,000 sales tax ‘windfall’
GRANBY – Good news for the town, bad news for the state of Colorado.
“The state is $800,000 poorer, and we are $800,000 richer,” said Granby Town Finance Director Sharon Spurlin, explaining to trustees how a five-year sales tax mix-up ended up in the town’s favor.
From a Granby vendor reporting wrong percentages in the span of five years – 2003 to 2008- sales-tax money that belonged to the town had inadvertently gone to the state, Spurlin said at Granby’s town board meeting Aug. 10.
“$800,000 ended up in the state’s column,” she said.
A recent state audit discovered the mistake, and the state plans to return the town sales tax to Granby by mid-September.
Spurlin said it wasn’t a matter of the vendor not reporting, but of an error in the reporting. The mistake had gone unnoticed because the town had been receiving what it thought was a correctly calculated sales tax.
The director said the money should especially come in handy if new tax measures that could impact government finances are approved in the November election.
In a memo to the board, Spurlin called it a “sales tax windfall” at a time when the “financial picture as of July 31, 2010, was anything but rosy.”
In the latest sales tax report for the town – prior to the news of the $800,000 – 2010 Granby sales tax to-date showed a 9 percent decline.
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