State audit: Bollinger County tax levies violate state law; county commission disagrees

Bollinger County officials could be sued for failing to correct sales-tax levies that exceed the maximum rates allowed by law, according to a state audit.

By continuing to maintain those levies, “the county commission has put the county at risk of litigation and financial loss,” the audit stated.

“If the sales-tax-levy issue was litigated, and the county ordered to discontinue collection of sales-tax levies exceeding the statutory maximum, the county would lose a significant funding source and could have to refund the excess sales-tax collections,” the audit stated.

But Presiding Commissioner Travis Elfrink said Thursday a St. Louis attorney has advised the commission the sales taxes are legal as levied because they were approved by voters.

The county commission responded in the audit report it “does not plan to change any of the sales-tax levies because they were approved by the voters, and the county cannot risk the potential loss of revenue,” according to the auditor’s office.

The issue was identified in three previous audit reports, but county officials have not corrected the problem, Missouri Auditor Nicole Galloway said in a news release Wednesday.

The audit recommended the commissioners consult with legal counsel “to review the various sales tax levies and determine which are valid and what further steps to take.”

Galloway said, “Resolving problems and ensuring proper oversight in a county’s operations are necessary to adequately serve the public.“

She said, “Citizens deserve fair and transparent treatment by their elected officials, which includes not being burdened with excessive taxation.”

Bollinger County government received an overall rating of “fair” in the audit, which recommended better accounting controls and procedures be adopted.

The audit called for improvements in accounting practices within the prosecuting attorney’s office and sheriff’s office, according to the news release. “Implementing the recommendations in the report would reduce the likelihood of errors or potential misuse of funds in those offices,” the auditor’s office said.

County officials said steps are being taken to implement recommendations about the prosecuting attorney’s and sheriff’s offices.

The audit also found the county does not reconcile fuel usage to fuel purchases.

Six of the county’s nine bulk fuel tanks are not equipped with fuel meters. As a result, fuel pumped from the tanks “is not accounted for properly or monitored by county officials,” the audit found.

Elfrink, the presiding commissioner, said fuel meters will be installed on the tanks. The commission also plans to implement fuel-usage logs, according to the audit.

Bollinger County voters have approved four sales-tax levies, the audit said.

In April 1989, voters approved a half-cent general sales tax revenue. It generated about $349,000 in 2016, according to the audit.

Voters approved a half-cent sales tax in April 2003, set to expire in 2007.

In 2006, voters passed a one-eighth-cent sales tax for funding services for the elderly. That tax generated about $87,000 last year, the audit said.

In 2003, voters authorized a half-cent sales tax that was set to expire in October 2007.

Voters in April 2007 approved a half-cent sales tax to replace the expiring sales tax. It generated about $349,000 last year, according to the report.

State law allows counties to impose levies of one-eighth, one-fourth, three-eighths or half-cent.

“Although there is no provision against having three sales taxes ... the total sales tax rate cannot exceed one-half cent,” the audit stated.

“With the two sales taxes for general operations and the senior-citizens sales tax ... the county is imposing total levies of one and one-eighth cent, five-eighths cent above the statutory maximum allowed,” the audit found.

mbliss@semissourian.com

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