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Clerk Treasurer flags $141,366.99 deposit and a potential $241,851.76 liability in food-and-beverage tax receipts
Summary
The Clerk Treasurer reported a food-and-beverage tax deposit of $141,366.99 and warned the town may be liable for roughly $241,851.76 in receipts collected from businesses that may lie outside town limits; staff discussed segregating the liability and consulting the Department of Revenue.
Clerk Treasurer (Mister January) reported that the town received a food-and-beverage tax distribution of $141,366.99. He warned that the fund may carry a potential liability of about $241,851.76 because some businesses sending payments have Maryville mailing addresses but may not be located inside the town limits and therefore might not be properly remitting to the town.
The clerk said state Department of Revenue rules and mailing-address conventions complicate enforcement and that the town cannot legally contact those businesses directly to tell them not to pay. He recommended segregating the liability in accounting until the state clarifies whether the collections are appropriate and whether remittances will be retained by the state.
Councilors and staff discussed placing the liability on a separate line in the accounting system and waiting for updated software to help reconcile the issue.
What’s next: Town staff will consider accounting segregation and may ask the town attorney and the Department of Revenue for clarification; no formal vote was taken.
