Firm could be hired by Lake Havasu City to retrieve more tax revenue
Lake Havasu City’s sales tax collection reached a 10-year-high in November, and even further growth is expected. As the city continues to prosper, city officials want to ensure that not a cent will be left unaccounted for.
On Tuesday, the City Council will discuss a possible $16,000 agreement to audit the city’s tax revenue this year. City officials including Administrative Services Director Jill Olsen recommended enlisting the help of Gilbert-based consultants Albert Holler & Associates to help ensure local businesses are submitting their taxes properly. The contract, which could require as much as $60,000 in additional funds next fiscal year, could earn $130,000 in otherwise overlooked tax revenue from Havasu businesses.
“The process includes the review of documents and materials to ensure businesses properly and accurately submit filings to the Arizona Department of Revenue,” said Lake Havasu City Manager Jess Knudson on Friday. “This approach supports businesses that are already actively filing their returns and identifies sales tax revenues needed to support local services.”
According to Olsen’s proposal, the deal would ensure businesses are licensed, aware of the city’s tax code, and are filing returns in an accurate and timely manner to maximize revenues. Those revenues will fund services including public safety, public works, general government and recreation throughout the city.
The $130,000 in annual anticipated revenue will come from corrections in tax filing among Havasu businesses, as they correctly file their taxes in future years.
The matter will see discussion and possible approval at the city council’s Feb. 26 meeting at 2360 McCulloch Blvd. The meeting is scheduled to start at 6 p.m.