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El Paso County finds missing millions
Posted: 10.20.2011 at 7:36 PM
Updated: 10.21.2011 at 7:05 AM
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El Paso County officials said millions of dollars in missing sales tax revenue was found after a multi-year investigation.  / FOX21: Mike Duran
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COLORADO SPRINGS, COLO. -- El Paso County officials have found millions of dollars missing in sales tax revenue.

A multi-year investigation revealed the county was short-changed about $6 million from 2005 to 2009 as a result of discrepancies, according to Nicola Sapp, the county budget officer.

Since voters approved a one percent sales tax, the state has collected the money, then issued it back to the county each month. The county was suspicious about the amount of tax revenue it was receiving but had nothing to compare the totals. That changed in 2004 when voters approved a one percent transportation tax.

"Vendors should be reporting the same since both entities are the same," Sapp said. "But our investigation revealed discrepancies of mis-reporting of taxable sales and tax due to the state."

The investigation also showed mistakes made by the state.

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"The state, for one reason or the other, misposted those collections and those funds," Sapp said. "For example, maybe they sent the money to Elbert County instead of El Paso County."

The county has recouped about $1.3 million, and more than $800,000 is pending in audit. Sapp said the money is being used in various ways to support the county's core operations.

About $1.6 million is expected to be recovered, which Sapp said is about 27 percent of the amount the county requested to be audited.

"The money not only benefits El Paso County, but all counties," she said. "All 64 counties state-wide, the state of Colorado and any municipalities who is having the state collect their sales tax on their behalf."

Sapp said the state recently launched a new online system for reporting sales tax, which should hopefully reduce the number of mistakes.

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