The Pikeville City Commission took action during its meeting Nov. 25 to contract with a company which officials said will help the city to collect taxes it is currently missing.
During the meeting, the commission unanimously voted to enter into a contract with DataMax Corporation for identification and collection of unpaid business license fees, occupational taxes and net profit taxes.
Pikeville City Manager Philip Elswick said the company’s primary purpose will be to identify primarily vendors serving businesses in the city who may not be paying the appropriate taxes to the city.
“It’s businesses that are operating in the city, outside our ordinance,” he said. “It’s mostly vendors that are selling products and things of that nature. If the people who live and work here have to comply, everybody has to comply.”
Each month, DataMax will send the city a list of companies they believe are working in Pikeville. The city, he said, will then match that list against the list of companies with which the city works to determine if any are working in Pikeville but not paying taxes.
Elswick said the deal with DataMax is that the company gets to take 50 percent of whatever extra taxes it collects for two years, then the city is no longer required to pay the company.