By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
Gainesville will conduct tax audit
Placeholder Image

Gainesville officials are making sure they’re getting all the taxes they are owed — at least, all the alcoholic beverage and hotel/motel taxes.

The city will soon contract with a statewide municipal organization to make sure businesses and hotels in the city are paying the correct taxes on the services they provide.

The review will include two audits: one on revenues from taxes on the sale of mixed drinks and another on taxes on stays in hotels and motels.

Revenues from the hotel/motel tax go toward promoting tourism in the city. A separate tax on the sale of mixed drinks supports the general operation of the city government.

The City Council approved a resolution to spend money on the audits Tuesday, authorizing the use of contingency funds for a contract with the Georgia Municipal Association for the review.

The city’s Administrative Services Director Melody Marlowe said the city conducts such audits on a regular basis.

The cost of the two audits would be $23,500, but city officials expect the revenue they will receive as a result of the audit will exceed the cost.

The last time the city had such an audit conducted for hotel/motel taxes was 2001. As a result of the audit, city officials received a net profit of $26,759.32, according to numbers compiled by Marlowe.

An audit of alcoholic beverage tax six years later netted the city $28,289.89.

Regional events