Local tax revenues declined in some areas by as much as twenty two percent this past month. Yet most of that shortfall is being blamed on an accounting glitch at the Georgia Department of Revenue.
Officials at the DOR say a leap year glitch is responsible for the revenue declines this month.
When consumers pay sales tax, retailers send that money every month to the DOR. From there, checks are cut and sent back to local municipalities.
This February there was an extra day. According to the DOR, the 29th day of February caused some discrepancies.
In the end several Georgia Municipalities were surprised with a twenty percent reduction in revenues. The underpayment seriously stressed out some city managers, who were bracing for a smaller reduction because of the stagnant economy. It’s unclear if there are any long term consequences of the underpayment. The DOR hopes to have the money to the local governments by next month.
Officials at the DOR say a leap year glitch is responsible for the revenue declines this month.
When consumers pay sales tax, retailers send that money every month to the DOR. From there, checks are cut and sent back to local municipalities.
This February there was an extra day. According to the DOR, the 29th day of February caused some discrepancies.
In the end several Georgia Municipalities were surprised with a twenty percent reduction in revenues. The underpayment seriously stressed out some city managers, who were bracing for a smaller reduction because of the stagnant economy. It’s unclear if there are any long term consequences of the underpayment. The DOR hopes to have the money to the local governments by next month.
