Roanoke City Pays Roanoke County Over Tax Mistake - FOX 21/27 WFXR Roanoke/WWCW Lynchburg News, Weather

Roanoke City Pays Roanoke County Over Tax Mistake

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Roanoke City recently had to pay Roanoke County $300,000 because of a tax mistake involving a rental car service.

It happened over a six year period from 2007 to 2012.

Basically, proceeds from the tax mistakenly went to the city when they were meant to go to the county.

The tax on rental cars works the same way as the sales tax in that it's the responsibility of the business to take the money out and report it to the commonwealth, and then the commonwealth takes its share before distributing the portions required to the city, town, or county where the rental car company does business.

In this case, the issue came about after one of the rental car companies in Roanoke opened up another location in Roanoke County and when the state collected the tax from the company, it gave the locality's cut to the city in one lump sum.

The mistake was uncovered by Roanoke County's Commissioner of Revenue.