A series of billing mistakes and oversights has the Erie County comptroller seeing red.

County Comptroller Mark Poloncarz is criticizing the county and the Erie County Industrial Development Agency over mistakes in a program that is supposed to create jobs. Some companies already getting tax breaks, known as PILOTS (Payment in Lieu of Taxes), were not paying anything at all.

In theory, the Erie County Industrial Development Agency negotiates PILOT deals to create new jobs, but often they provide a break on property and sales taxes just to retain jobs. The County Comptroller conducted an audit of PILOT payments over a three year period and says about ten percent of the deals had errors. Either recipients were over-billed or under -illed.

Erie County Comptroller Mark Poloncarz said, "Which means for some parties, we sent invoices that did not cover the full amount. And for other parties, we actually sent invoices that were more than they were supposed to pay."

Or some companies didn't get billed at all. For instance, Poloncarz pointed out, Uniland Development did not receive an invoice for seven years when the Blue Cross Blue Shield headquarters was located on Main Street and more than $300,000 went uncollected.

When the mistake was discovered, the county's director of Real Property forgave over $200,000 in penalties and interest.

"If the property owner would pay in full, the principal that was due, he would waive all penalties and interests and he did that. Which we don't believe was right because we don't believe he has the power to waive penalties and interest," said Poloncarz.

Auditors found Roadway Express didn't receive an invoice for ten years amounting to nearly a half million dollars unpaid at its West Seneca terminal. Almost half of that was penalties and interest that was waived. And Poloncarz points out, when the money isn't collected, it can hurt villages, towns, and school districts.

Poloncarz explained, "The County is actually attempting to recoup this money and has recaptured some of it already, but I'm sure the towns, villages, and school districts that these properties effect don't even know abut this, at this point."

Responding to Poloncarz's findings at Uniland a spokesperson released a statement saying in part that the company pays $8 to $9 million in taxes on hundreds of properties and as soon as they were notified of the discrepancy, they made a full payment.

Poloncarz points out, Erie County Industrial Development Agency negotiates the PILOT agreements, then formulating and sending out the bills is handled by two different county agencies. Poloncarz says that work should be done by one agency or the Erie County Industrial Development Agency itself.

Copyright 2010 WIVB