General Assembly takes action on tax reform measures to protect Missouri employers from DOR ambushes

A Missouri House committee voted to rein in the Department of Revenue (DOR) from unfair audits on certain Missouri business sectors. The Missouri House Ways and Means Committee voted do pass Senate Bill 18, legislation that would require the DOR to notify affected sellers when there is a change in their burden to collect taxes. The bill is sponsored by Sen. Will Kraus, a Republican from Lee’s Summit.

“There are a lot of inconsistencies in the applications of the tax law and that really keeps business from being able to plan for the future,” Missouri Chamber of Commerce and Industry vice president of governmental affairs Tracy King, has testified.

Much of the bill debate centered around the gymnastics industry, which has been hit by a high rate of audits by the DOR claiming the businesses now owe taxes on services that had not been taxed previously. However, the legislation would protect all employment sectors from being similarly targeted in the future.

“We are hearing from small businesses across the state about the DOR’s overreaching audits,” said King.  “This legislation sends a clear message to the DOR that its job is to collect taxes as defined by law, not redefine the law through audits.”

Under SB 18, the department would be required to notify corporate taxpayers by mail, e-mail or secure electronic means of direct communication. The DOR also would be required to update its website with information regarding modifications in sales tax law.

Senate Bill 18 was passed by the Senate and heard in the House Ways and Means Committee. It now awaits a hearing in the House Select Committee on Financial Institutions and Taxation. If passed out of that committee it will be debated on the House floor for final approval.

For more information please contact Ms. King at tking@mochamber.com or by phone at 573-634-3511.

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About mochamber

The Missouri Chamber of Commerce and Industry understands that the quality of life in our state depends on quality jobs for Missourians. To that end, we have one simple mission: to protect and advance Missouri business.

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