Department of Taxation and Finance

Sales Tax Distribution Process (Follow-Up Report)

Vendors submit their sales tax collections to the Department of Taxation and Finance, and the Department distributes the local portions of the tax revenue to the appropriate localities. In report 2003-S-51, we audited the accuracy of the complex local distribution process. We found that local distributions of sales tax revenue were reasonably correct, but certain improvements could be made in the Departmentís processing of sales tax returns. For example, errors affecting the local distributions were not always detected by the Department and assessments were not always issued promptly to vendors for underpayment of taxes or late filing of tax returns. When we followed up on these matters with Department officials, we found that some progress had been made in addressing the problems we had identified.

For a complete copy of Report 2006-F-12 click here.