Cookeville’s finance department told the state of the misreporting in Nov. 2022
According to a report by WSMV.com, the City of Cookeville will be reimbursed more than $600,000 by the state of Tennessee after the state misreported grocery sales. The misreporting led to an estimated $660,000 in sales tax, but the “local option sales tax returned to the city was $636,320.91.”
Cookeville city manager James Mills told WSMV Cookeville didn’t have an opportunity to budget for the difference.
“We don’t have a chance to budget for that,” Mills told WSMV. “If we know ahead of time that this revenue is going to go away, then we might have opportunities to make up for that in different ways.”
According to the report, Cookeville’s finance department told the state of the misreporting in Nov. 2022 after observing tax stats from Aug. 2022. The Department of revenue said there was no miscalculations on their part. In August 2023, after being informed of further miscalculations, the state agreed to correct the mistake.
The misreporting has now been corrected.
“Revenue officials advised us that they were attempting to seek reimbursement for the tax dollars the city lost during the sale tax holiday,” the city said to WSMV. “Last week, Representative Williams notified us that we would be receiving a reimbursement check from the state.”
According to the report:
A 40% portion will go toward the city, 58% toward the Putnam County School System and the remaining will serve as administrative costs between the state and the Putnam County Trustee’s Office.
Read the original report HERE.
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