Because of a financial mistake made by state auditors in 2021, Greeneville City and Greene County owe a combined $1.3 million dollars in local option sales tax monies back to the state over the next three months.
In 2021, a local business, which was not named during discussion about the matter at the Greene County Budget and Finance Committee meeting Wednesday, was allowed to withhold option sales tax. But four years later, the state has established the business should not have been granted the waiver. By the way, six years is the statute of limitations on mistakes such as that being discovered and corrected by the state.
In lieu of a direct one time or monthly payment to the state, a total of $1,321,599.00 will be withheld from Greeneville and Greene County over the next three months. Half of the monies go to the education debt service with the remainder to the ADA in the school systems. The amount due back in ADA monies from the county is $434,784 and $226,000 from the Town of Greeneville.
