Accounting error costs Georgia $240 million, but tax collections remain strong
ATLANTA (AP) — Georgia is taking a one-time $240 million hit to its bank account because accounting software wasn’t sending the right share of sales taxes to local governments.
The payments were made last month after an audit by the state Department of Revenue. Figures released Tuesday show the change plunged state revenue into the red in September as it fell 3.6% compared to a year ago.
Without the payment, collections would have risen 7%.
Deputy Revenue Commissioner Jessica Simmons says businesses were using accounting software that misallocated taxes between late 2015 and early 2018.
Despite the one-time payment, underlying tax collections remained strong in September.
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