Grand Jury: Stores at Outlets at Tejon charging higher sales tax meant to apply only to city of Arvin

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ARVIN, Calif. (KGET) — Stores at the Outlets at Tejon have been accidentally charging a higher sales tax than they were supposed to, according to a new Kern County Grand Jury report. 

The report says stores have been charging the 8.5 percent sales tax rate that businesses in the city of Arvin have charged following the passage of Measure L in 2008, which raised the tax rate by 1 percent. However, that extra 1 percent is only supposed to apply to sales within the city limits. 

The Outlets at Tejon are outside of the Arvin city limits and therefore stores should not have been charging the higher tax rate, the report says. 

The city identified 17 stores located at the Outlets that have been sending the Measure L sales tax money to the state, which then dispersed it to the city, according to the grand jury.

The city has notified the parent companies of the stores charging the higher rate and the procedure for any refund claims, the report says. The extra money, which currently stands at $701,516, has been set aside by the city in an assigned account for possible claims by the corporations.

After October 1, any unclaimed funds remain with the city, the report says. The Grand Jury recommends that the city use any unclaimed funds for road maintenance.

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