Selma owed $49,000
Published 12:00 am Friday, November 24, 2006
CAMP HILL – Due to a typing error by the company that handles Camp Hill’s sales tax revenue, the town may owe the city of Selma a hefty $49,000 bill.
Camp Hill Mayor Chester Carroll revealed the bill at the town’s regular council meeting Monday. According to a letter he received from Alatax, a company utilized by Camp Hill to ensure that all citizens are paying their taxes, the town has unwittingly spent tax revenue from the city of Selma for almost three years.
Email newsletter signup
“I was informed that the tax payments that were supposed to be going on behalf of Selma was going into our account,” Carroll said.
Furthermore, the letter stipulated that the town was liable for Selma’s money, which totals $49,753.
“That means we have to pay that back,” Carroll said.
The money problem began around three years ago when Alatax accidentally assigned the wrong tax identification number to Camp Hill’s account.
“It was supposed to be Selma’s and instead it was ours,” Carroll said.
The letter stated the company would help the town set up a two-year payment
plan, but the mayor is not ready to sign the dotted line just yet.
“I’ve asked them to review this so it is certain that it is a debt we owe,” Carroll said.
Also, Carroll said he plans to find out if and how much liability Alatax has, since the error originally started with them. But even if the town has to pay back the full amount, Carroll said it would not be a problem.
“It’s not going to break us,” he said. “That’s not good news, but it’s not a disaster.”
Cynthia Mitchell, Selma city treasurer, said she was aware of the mistake and they are working on sending the funds to Selma.
“It’s over a few years, and we’re talking about having them send it in installments,” Mitchell said.
Victor Inge of The Times-Journal contributed to this report.