OREM — Despite late notification, Orem city businesses have responded well to a new citywide sales tax, said Orem City Treasurer Darwin Kocherhans.
"The people have been really good," he said. "Disappointed, but no one really irate."
Orem City on Tuesday mailed 2,300 letters to businesses, informing them of the sales-tax increase from 6.25 percent to 6.35 percent.
"Hopefully, you were aware of this sales tax change and made the necessary adjustments to your sales system," the letter states. "If you were not aware, we apologize for the inconvenience this may cause you."
The letters came after the Cultural Arts and Recreation Enrichment (CARE) tax went into effect April 1.
No businesses received specific notification before that day because of confusion between the city and state as to who was responsible for notifying businesses of the change.
Orem City Finance Director Jeff Pedersen said it was an unfortunate miscommunication and one he wished could have been avoided.
The comments he said he has heard from businesses are concerns over the discrepancy in sales-tax revenues during the days when many businesses were not aware of the 1/10 of 1 percent increase.
However, the city cannot offer rebates or refunds for those funds, Pedersen said.
The sales tax was an increase passed by voters in November as a means to help bolster cultural arts and recreation activities in Orem.