Clinger’s restaurant overcharged customers

Supervisor Chairman Case Clinger
Supervisor Chairman Case Clinger

A story of mine posted Wednesday morning on The Floyd Press web site — and scheduled to appear in Thursday’s paper — details how the Pizza Inn restaurant owned by Board of Supervisor Chairman Case Clinger routinely and incorrectly overcharged customers for at least a year with sales taxes almost double the legal amount.

This became a news story because Clinger, as chairman of the county board, is a vocal critic of the county school system for its budget practices and an opponent of higher taxes for fund requests by the system and other county departments.

Clinger says he didn’t know that his computerized cash register system was overcharging customers and stopped the practice Monday immediately after learning of it.  He also plans to pay the overcharged taxes directly to the Town of Floyd and will have a full and complete report on the situation once he has finished an internal review of what and how it happened.

From the Floyd Press Story:

The Pizza Inn Restaurant owned and operated by Floyd County Supervisor Chairman Case Clinger, a frequent critic of the county school system’s budgeting and spending practices and a strong anti-tax advocate, routinely and incorrectly charged customers for at least a year a sales tax that was almost double the amount required by law.

Clinger ended the practice Monday, saying he was unaware his cash registers were charging too much tax until learning about it earlier in the day. The overcharges go back at least a year and came from an improperly programmed computerized cash register system provided to the restaurant by a company that is no longer in business, he said.

“I was not aware this was happening,” he said. “It should not have happened and full restitution will be made as soon as we determine the exact amount involved.”

The restitution includes paying the extra sales tax collected to the Town of Floyd, Clinger said, adding that his initial investigation determined that Virginia did receive all the sales tax it was due during the period of overcharges.

Pizza Inn was charging customers 10.3 percent sales tax on sales but only turning over only 5.3 percent to Virginia, of which one percent comes back to Floyd County.

Read the rest on The Floyd Press web site and in Thursday’s paper.

More to follow.

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4 thoughts on “Clinger’s restaurant overcharged customers”

  1. Having a hard time wrapping my head around this one. Especially since most cash registers separate product sold from taxes collected and generates an end of day report. On $1,000 in sales, $53.00 should have been collected for taxes, not $106.00. A quick glance should have shown the error immediately. And how was the correct amount submitted to the state if the incorrect amount was being charged? Either Mr. Clinger is really deficient with math or there is something else going on here. Either way, I’m really concerned about the position he currently holds in Floyd County.

  2. Wow! This man wants to micromanage the County and the School system budget yet he doesn’t realize he has been overcharging his customers for at least a year? This could have been an honest mistake but do we really want a person who makes a mistake of this magnitude managing our budgets? I know of at least 6 teachers who left the school system this year due to the salary situation at the schools. It appears that he feels the County shouldn’t raise taxes to keep our teachers and staff but overcharging at his business and spending $100,000 on a sprinkler system in addition too buying a million dollar building with the tenant leaving is just business as usual.I’m curious as to how many tax checks were written over the last year and this was not noticed.Has this only been happening for a year? Has it gone on longer? Finally why would he want to pay restitution to the Town of Floyd? He doesn’t owe them any taxes. A better place to send a check would be to the County so everyone in the County gets a “refund” not just the residents of the town. I remember a recent Council session where the school system was told any extra money would go back to the county budget. Any money he improperly collected should go to the same place.

  3. Retail Sales Tax

    In-state dealers – Generally, in-state dealers (individuals or businesses) are those making Virginia sales while having one or more physical locations in Virginia. Businesses subject to the Virginia Retail Sales Tax must submit a monthly return to the Department, Form ST-9, by the 20th of the month after the sales occurred. A return must be filed for each period, even if there are no sales to report. Based on your tax liability, the Department may change your filing frequency from monthly to quarterly. If your filing frequency is changed, you will be notified prior to the effective date.

    Beginning with the July – September 2013 return, due October 21, 2013, quarterly filers must submit their returns and payments electronically. To meet this requirement, the returns must be filed using eForms, Business iFile or Web Upload. Monthly filers have been required to file and pay electronically since July 2012.

    I copied and pasted the above statement from the Virginia sales tax division. At what point if the sales taxes were paid to the state properly, was it not known there was an excess. If this was done monthly, it took over a year to identify?
    I own property in Floyd County and wouldn’t mind a slight increase to help keep our school funded. Do you do your own accounting or do you have an accounting firm? Either way it shouldn’t have taken a year to see the discrepancy especially customers with months old receipts that verbally questioned the additional tax. I wasn’t aware of any boycotting going on either from county employees.

    You moved to the top because of the “un-publicized” agreement with the last Superintendent and Chairman. Since you are on the top now I guess you just pat yourself on the shoulder for self admittance, before anybody made an issue. Good move indeed!!!

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