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Stafford recoups roughly $1 million after sales tax audit identifies misallocated payments
Summary
City officials said an audit by the Stafford Economic Development Corporation found businesses that reported local sales tax to other jurisdictions; the city reported a net gain of about $1,002,900 and will return to the council with a final report.
Stafford officials told the City Council on July 2 that a sales tax compliance audit identified misallocated local sales tax payments, resulting in a net recovery of about $1,002,900 for the city.
The finding was disclosed during an update on the audit led by the Stafford Economic Development Corporation. Council member Tim Woods read an email from a staff member identified as "Miss Shaw," saying the audit found $1,392,361 in local sales tax that should have been allocated to Stafford but had been reported to other jurisdictions dating back to February 2021.
The council was told Avenue Insights conducted the audit and compliance work that located the misallocations involving eight businesses physically located in Stafford. Woods said the amount represents back pay dating to 02/2021 and that the net gain to the city after reimbursements is $1,002,900. A final audit report was not available during the meeting; staff said additional details will be presented at a future council meeting.
Council members thanked Stafford Economic Development Corporation members and staff for the work. One council member asked for more time to analyze the data and requested the item be brought back on a future agenda for follow-up review.
The sales-tax audit update was presented as an informational item; no formal vote or ordinance was recorded on July 2. Council members described the recovery as positive for the city's finances and directed staff to return with the full audit report for additional review.
