HCS SB 1394 -- TAX COLLECTION

SPONSOR:  Vogel (Cooper, 120)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tax Policy
by a vote of 17 to 0.

Current law requires the Department of Revenue to notify each
local taxing entity of a delinquency before turning the case over
to the Attorney General for collection.  Since the department
automatically collects the delinquent local tax, this substitute
changes the law to relieve the department from this requirement
and mandates the department to include local taxes in its suit
against a taxpayer.

The substitute will allow the department to offset any property
tax credit refund against an income tax delinquency or a
delinquency created by a property tax credit claim.

Revocation of a retail sales tax license is allowed for failure
to pay employer withholding tax.

FISCAL NOTE:  Estimated Income of $5,386,019 to Unknown in FY
2005, Unknown in FY 2006, and Unknown in FY 2007.  Estimated
Income on Other State Funds of Unknown in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that $27 million in withholding tax
delinquencies exist with 20% to 40% collectible according to the
Department of Revenue.  The bill provides another tool to collect
taxes already due.

Testifying for the bill were Senator Vogel; and Department of
Revenue.

OPPONENTS:  Those who oppose the bill say they are against the
file and pay section.

Testifying against the bill were Missouri Chamber of Commerce and
Industry; and Associated Industries of Missouri.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:17 am