More on ESP sales tax problem

Last night, I received the following email from Pensacola City Manager Al Coby:

Rick,

Attached is the memorandum that was sent to City Council the first of October on the sales tax issue identified by the audit. Dick Barker would be willing to provide you any information desired as to how the error occurred. The City has been working with and has received cooperation from the businesses effected and has been able to work out amicable repayment plans with all.

Al

The memo is available below. Of 1,800 marked as tax-exempt by ESP, 257 accounts were deemed taxable, resulting in $343,258.15 due in back sales taxes for the period 9/1/06 through 8/31/09.

The 257 accounts break down into 136 active customers (owing $317,634.35) and 121 inactive customers ($25,623.50)

Of the total $343,258.15 not billed properly:

One customer owes: $140,781
Four customers owe: $53,460
Balance owes: $149,017

Here is the memo: ESP tax

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