May 16, 2012
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Reporter: Karen Campbell Email

Businesses Misfile Taxes - Hurting County Budget

Rockingham County may have to repay thousands of dollars to a business that claims it overpaid its taxes.

This is second time in six months this has happened.

"They pay the county and then two or three years later they come back and say: 'Hey, we made a mistake. We want our money back,' said Pablo Cuevas, Rockingham County Board of Supervisor.

Cuevas is talking about another business that improperly filed taxes.

"They just added two or three percent to the previous year and sent it in."

Cuevas is talking about Burner Well Drilling. The company is requesting a refund for the years 2008, 2009 and 2010, totaling $67,000.

TV3 spoke with Gary Burner of Burner Well Drilling on Wednesday over the phone.

Burner said this was a bookkeeping error and that the company's accountant discovered the issue.

Burner said he's not blaming anyone. He said he just wants to do what's right.

"What they're supposed to do is file an itemized list every year of their assets," said Lowell Barb, Rockingham County Commissioner of Revenue.

Barb says those assets include machinery and tools, vehicles, furniture and equipment.

"We have to trust the business owners, or their accountants, to send us this information so we can assess the vehicles and determine a value for those so they can be taxed," said Barb.

That misinformation that is most frustrating among county officials.

Back in June, the county had to repay Miller Coors nearly $2 million because of overpaid taxes.

It took the county six months to review that case.

Already this year, four businesses have asked the county for tax refunds due to misfiling.

But just two businesses asked for refunds between 2008 and 2010.

The reason for the increase? Barb says tough economic times.
Business are looking to save in any way they can.

Cuevas says by law, the county has to refund not only the tax money, but an additional 10 percent on that money for the years a business improperly reported.

"If we can generate any where close to two to two-and-a-half percent at the most on investments that we make (because of the regulations from the state) we are technically losing seven to eight percent on the use of that money that we had," said Cuevas.

The board decided Wednesday to table the refund until the Commissioner's office, and others, can look over the papers that Burner Well Drilling submitted.

Officials say they want to properly audit the request.

Board members say the businesses are good, honest businesses,
but when companies change ownership, or transfer records, these types of mistakes tend to happen.


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