City hires auditors to check taxes, biz licenses

Published 12:00 am Wednesday, November 2, 2016

An auditing service will soon begin a random check of local businesses to determine that the proper amounts are being remitted for sales taxes and business licenses.

The Andalusia City Council agreed Tuesday to enter a contract with River Tree Systems, Inc., which will charge an hourly rate for its work.

The cost of many business licenses are based upon total retail sales, Mayor Earl Johnson explained. Based on the company’s experience in other communities, it is likely they will find errors in calculation here, he said.

The Alabama Department of Revenue collects sales taxes for the city, but rarely conducts audits in cities the size of Andalusia, he said.

The council can terminate its contract with River Systems with a 90-day notice.

In other business, the council:

  • Approved an alcohol license for The Happy Kitchen.
  • Entered an agreement with Precision Concrete to do up to $10,000 in repairs to existing sidewalks. The company repairs bumps and other potentially accident-causing issues with sidewalks.