The Norman Transcript


April 13, 2014

Norman use tax takes a hit while Moore sales tax flounders

NORMAN — Norman use tax took a hit this month while Moore’s sales tax floundered for the first time since sales picked up in the post-tornado recovery period.

For the city of Norman, however, sales tax collections are a bright spot on the revenue horizon this month.

Norman sales tax is up 6.79 percent this month compared to 2013 figures. Norman received $5,230,836 from the Oklahoma Tax Commission on April 9. Sales tax is up 5 percent for the year, running above budgets of 4.25 percent.

Public Safety Sales tax receipts were $285,122 this month. However, there was an anomaly this month in use tax collections.

“Use tax was a zero because a large use taxpayer got a refund for overpayment for the last three years,” Norman Finance Director Anthony Francisco said. “It happens often. Obviously, this was a big one.”

Francisco said settlements are made in a lump sum and can go back three years. In this case, a business was inadvertently paying use tax and sales tax on the same products.

“They legitimately got a big settlement of past overpayment,” Francisco said.

Cleveland County sales tax was $636,462 this month, running well above last year’s receipts of $592,625. County use tax was $15,771, down from $30,013. County use tax would be affected by the same large company refund that affected Norman.

Moore also experienced an anomaly this month. Moore’s sales tax receipts this month were $2,064,259 running below $2,088,401 for last year.

“We saw a decrease of about 7.74 percent,” City Manager Steve Eddy said. “There was an audit by the tax commission of a large taxpayer, and that audit resulted in an overpayment of about $290,000 over a period of time and that amount was deducted from our sales tax remittance for this month. If it weren’t for that, we would have shown an increase of about 5 percent.”

Moore use tax was up at $67,639, compared to use tax collections of $55,385 last April.

Joy Hampton



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