The city of Crossville owes an additional $14,645.45 to the Tennessee Department of Revenue after a sales tax audit found the city hadn’t collected enough in taxes for sprinkler heads and did not require exemption forms for industrial manufacturing sales tax.
City Manager Greg Wood told the city council the city staff wasn’t aware it needed to charge sales tax on sprinkler heads in fire suppression systems and has never collected the tax. Taxes will be charged moving forward.
The audit covered Dec. 1, 2015, through Dec. 31, 2018. The two issues were the only findings uncovered in the nine-month audit.
The amount assessed to the city is $12,541.16, with a total of $14,645.45 with interest.
The first reading of the budget amendment was approved as part of the Crossville City Council’s consent agenda June 11.
Also approved during the meeting were:
•third and final reading of a $6,051.10 budget amendment to purchase a generator for Engine 18 in the Crossville Fire Department
•third and final reading of a $14,000 budget amendment to purchase a new K9 to replace K9 Arko, who retired Jan. 1, with funds including purchase of the animal and six weeks of training for the K9 and handler
•first reading of year-end budget amendments to ensure no budget line ends the fiscal year with a deficit, with $4,700 moved in the city court budget and $40,000 in the water and sewer fund
•Atkins Engineering to provide professional services for Crossville Memorial Airport