Loss from Pulte tax error may not be $1 million - East Valley Tribune: News

Loss from Pulte tax error may not be $1 million

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Posted: Monday, April 21, 2008 7:59 pm | Updated: 12:07 am, Sat Oct 8, 2011.

An anticipated $1 million-plus loss in sales tax revenue in Queen Creek will likely be a quarter of that amount, based on preliminary audit findings by the town.

Tax error may cost Queen Creek $1M

Queen Creek officials recently said the town faced losing more than $1 million because Pulte Homes erred in paying construction sales tax to the town for developments in Pinal County. Town officials said they have since determined that a majority of the houses claimed to be outside town limits are in the town.

Last week, town officials took the addresses of the houses in question and plotted them on a map, discovering that 301 of the 400 addresses were in town limits.

"That initial number of $1 million was for 400 homes," town spokeswoman Marnie Schubert said.

Exact numbers of the amount owed by the town to the state to give back to Pulte is not available as the audit is ongoing, Town Manager John Kross said.

Pulte Homes filed amended state tax returns back to 2004 claiming they had incorrectly paid Queen Creek for construction they completed in Pinal County, according to town e-mails. During that time, Queen Creek was paid between $1 million and $1.5 million in construction sales tax, said Yolanda Bracamonte, Queen Creek controller.

The Arizona Department of Revenue won't allow the town to pay the overage back with town reserves, but rather the amount would be deducted from future disbursements of sales tax owed to the town, Bracamonte said. Queen Creek has forecast town sales tax income of about $13.5 million for the current fiscal year.

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