Farmington officials order sales tax audit
Friday , March 15, 2013 - 1:23 PM
FARMINGTON -- The city council voted unanimously at a recent meeting to hire Econowest to conduct a sales tax audit for the Station Park project.
City leaders want to make sure construction materials are being correctly reported for the $2.5 billion project on the city’s west side.
The city derives sales tax revenue from direct sales of retail products in the development but also credit for construction material used in the project. If the costs are reported, the city benefits, but if they are not the city loses money, according to City Manager Dave Millheim.
Doug Macdonald of Econowest has experience dealing with the process of auditing contractors, as a former economist for the State Tax Commission, according to Millheim.
The city will pay the company a minimum of $1,500 or 20 percent of the savings from the audit, with a capped limit of $25,000.STORY:201303150043Farmington officials order sales tax audit/Local/2013/03/15/Farmington-officials-order-sales-tax-audit.html-1