Indiana Programming Error Rectified - Counties Receive Funds With Interest
- Sales Tax News
- Apr 17, 2012 | Susan McLain
A recent Indiana Department of Revenue programming error prevented $206 million from being distributed to local Indiana counties. As a result, Indiana Department of Revenue Commissioner John Eckart resigned. This week, Governor Mitch Daniels named Mike Alley as the new commissioner to replace Mr. Eckart.
The “…error in the County Statistics Report was discovered by the Office of Management and Budget, which has been engaged in an ongoing review of Department of Revenue reports.” According to a Department of Revenue news release, “[t]he error resulted in counties receiving approximately $13 million per month less than they should have since January 2011.”
The funds were directed to be immediately distributed to each county, along with interest. The amounts due each county were recertified and were distributed by the state auditor on April 5, 2012.
“The programming error was discovered in the generation of the County Statistics Report…. [T]he report failed to capture the amounts due to counties form individual taxpayers who separated their state and county estimated payments when remitting quarterly income tax estimates. Consequently, local option income taxes were under-distributed and State General Fund revenues were overstated.”