Port Neches Council to discuss tax refund agreement
Published 2:44 pm Tuesday, February 16, 2016
PORT NECHES — The city of Port Neches is looking at options to refund more than $67,000 overpaid by a business.
The Texas Comptroller of Public Accounts notified the city’s director of finance last month of an overpayment in the amount of $67,556.46 in local sales and use taxes. The overpayment was the result of a business that filed a refund claim for taxes they paid in error, according to the correspondence to the city. The claim has been verified by the Comptroller’s Office and since the amount has already been refunded to the taxpayer, whose name is not given, the debt must be repaid to the state in addition to a previous payback amount agreement from 2012.
“The city received a letter from the Comptroller’s Office indicating approximately $67,000 in sales tax was remitted to the city. The comptroller verified a refund was in order and consequently the city has to repay the comptroller,” Port Neches City Manager Andrè Wimer said.
Council will discuss the issue and options for repayment during a 4 p.m. meeting Thursday at city hall, 1005 Merriman St.
The city has the option to either: repay the full amount, reimbursement by crediting the full amount in a month or reimbursement of 41 monthly deductions of $1,648 from sales tax receipts. Wimer recommends the latter option.
The city is already in a payback agreement due to two previous overpayments with an outstanding balance of $28,260 as of January 2016 and is paying $2,826 per month through November. Wimer said this stems from a 2012 overpayment with an approximate amount of $135,000.
“It’s a situation that occurs periodically across the state,” he said.
According to an April 2015 story in the Kilgore News Herald, the city of Kilgore dealt with a cumulative overpayment of more than $744,000 made by a single taxpayer between 2007 and 2011.
In other business, council will consider approval of members to its Zoning Board of Adjustment. A vacancy exists in the regular member position for a term that would expire Jan. 1, 2017. Councilmember Adam Anders has recommended Steve Visser, currently an alternate member, be appointed, according to information from the city.
Should city council take this action that would create a vacancy for an alternate position with a term expiring Jan. 1, 2018 making it necessary to fill the alternate position.
The terms of regular members Corey Belanger and Gary Stretcher and alternate members Chris Swanson and Trent Cobb expired Jan. 1. In addition, alternate member Charles Bales resigned last month while Boyd Parks’ resignation was tendered around the time the board learned they were being sued by their own city council late last year.
During a Jan. 28 meeting of the ZBA, former councilmember Matt Vincent was appointed as chairman of the board, new member B.C. Clemmons was appointed vice-chairman and Lee West was appointed to serve as a regular member.
Regular member Sam Loyacano, whose term is not up, will continue to serve.
It has been a tradition of sorts for council to appoint an alternate to a regular position when a vacancy occurs but not this time.
Donald Ware and James Ware will continue to serve as alternates as well as newly appointed alternate Gary Boudoin. Visser was named to the alternate spot at the January meeting.
Other agenda items include:
- Discuss and take action regarding the approval of an appointment to the Construction Board of Adjustments and Appeals.
- Discuss and take action regarding the approval of an appointment to the library board.
- Discuss and take action regarding the approval of an interlocal agreement between Jefferson County and the city of Port Neches for street repairs and maintenance.
- Discussion regarding potential projects to be included in a 2016 debt issue.
E-mail: mary.meaux@panews.com
Twitter: MaryMeauxPANews