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Unexpected Tax Refund To Cost Reno, Others Money

Reno is among local governments having to come up with shares of an unexpected $27 million tax refund owed to an unidentified company for sales taxes paid to Nevada but actually owed in another state.

State Department of Taxation spokeswoman Stephanie Klapstein says the company's name and details of the audit likely will become public when the Nevada Tax Commission considers the refund in December.

City Manager Sabra Newby says Reno likely will dip into reserves and not make budget cuts for its $2.7 million share.

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The Reno Gazette-Journal reports that a memo by Reno's finance director says Washoe County could owe $4.6 million and Sparks could owe $1.4 million.

The memo says the state is working out a payment plan to spread the payback over up to three years.