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Madison County may end up owing the state of Florida more than $22,000 in back sales taxes accrued over the last five years, if the Florida Department of Revenue has its way.
The issue came to light when the DOR questioned why the County of Madison was not collecting sales tax on rental charges for the “green boxes” used by businesses in solid waste removal.
At the Board of County Commissioners meeting Wednesday, Aug. 17, Commissioners stated that the reason the sales tax was not collected was that providing the green boxes was believed to fall under the category of a “service provided” by the county – receptacles for containing and removing of solid waste – and the money charged for placement and use of the boxes was a fee for service provided rather than a rental charge, and therefore not subject to sales tax.
The Department of Revenue, however, may see things a little differently. DOR may want to go back five years, auditing the county’s records regarding the green boxes. The question hinges on whether the money is indeed a service fee, and therefore exempt like the county thought it was, or if it is a rental charge and therefore subject to the tax. If DOR decides the latter and wants to collect sales tax retroactively for that time, Madison may find itself socked with the tax bill.
In other business, the commission proceeded quickly through its agenda, ending up with a total of five items moved to the next meeting’s agenda. The board also appointed Marianne Green to the Madison County Value Adjustment Board, as the one citizen member owning homesteaded property. The other two members, from the BOCC, are Commission Chair Renetta Parrish and Commissioner Justin Hamrick.
The purpose of the Value Adjustment Board is to hear appeals regarding denied exemptions, petitions relating to assessments and appeals concerning ad valorem tax deferrals. Green said she would be honored to serve on the board and happily be of service to the public in that capacity.