CADDO — Confronted with a case of mistaken identity, Caddo city representatives have tended to a sales tax revenue headache they did nothing to cause, all because their town has the same name as another town’s county.

Deanna Lilley, Caddo town clerk, told the Democrat Caddo received an exorbitantly high check electronically deposited into the town’s account at Shamrock Bank from the Oklahoma Tax Commission for sales tax revenue in June 2008.

An industrial machinery company had mistakenly reported $54,135.78 in sales tax collections for the town of Caddo, when the company had actually done business with Caddo County, Lilley said. Once the town of Caddo was notified about this error, Caddo officials offered to give the Oklahoma Tax Commission a check for the $54,135.78, but the Oklahoma Tax Commission refused.

“They said that would mess up their books,” Lilley said. “What they want to do is hold out a little each month until they recoup that $54,000.”

As a result, the Oklahoma Tax Commission has been allocating $8,000 each month to Caddo for its sales tax revenue and withholding any money exceeding that amount to repay the $54,000 tax error. Lilley estimated this process to repay the money would take approximately two years.

“Keep in mind, we have the money already. They sent us $54,000. They just won’t let us send the whole thing back,” Lilley said. “This is just their way of getting back that overpayment.”

However, the Oklahoma Tax Commission monthly reports of sales tax revenues, which are reported in the Democrat, are misleading because they only report the amount given to Caddo, the $8,000 each month, rather than the sales tax revenue actually earned.

“Our sales tax has not gone down anymore than any other place in the nation,” Lilley said. “Obviously the economy is in a slump nationwide, but we’re not experiencing the loss of business that it looks like if you’re take those figures at face value.”

At the Caddo council meeting Monday evening, the town board decided it wanted to repay the overpayment sooner than two years and voted to increase the Oklahoma Tax Commission’s monthly withdrawal to $8,000 each month, so that the remainder of the $54,000 overpayment can be repayed in full within six to seven months.

“Starting in February, our sales tax revenue is going to look really, really low because OTC is going to withhold $8,000, and let us keep the rest,” Lilley said. She explained the town of Caddo has not been losing money or business.

As evidence to that statement, the Caddo Dollar General recently hit $1 million in sales in less than two years, a source of celebration for the store and the community.

“We’re okay, and that’s what we want people to know,” Lilley said. “[These numbers are] not a true reflection of business in Caddo.”