Orem Businesses Receive No Warning on Sales Tax Increase

Orem Businesses Receive No Warning on Sales Tax Increase


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Randall Jeppesen ReportingBusiness owners in Orem aren't happy after finding out they were supposed to be charging more in sales tax.

Kent Pyne at the Scooter Lounge didn't know he was supposed to be charging 6.35 percent for sales tax. Instead, he's been charging the old rate of 6.25 percent.

"I had no idea what was going on," Pyne says.

There are businesses across town that didn't know about the tax increase. It was an art tax passed by city residents last November. Apparently no one told the businesses the new sales tax took affect April 1.

"They're owed an apology. I apologize. Personally, I think the state owes them an apology," says Orem finance director Jeff Pedersen.

He says officials assumed the state would notify the businesses. The state maintains notification is the job of the cities. Orem is now sending out official notification.

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