The Senate Ways and Means committee voted out a bill last week that would ease the burden on businesses having to write multiple checks to political subdivisions by allowing them to remit one payment to the Department of Revenue instead.
Currently businesses that operate in multiple cities and counties may have to multiple checks to several entities, requiring manpower and time. If HB 389, sponsored by Rep. Denny Hoskins (R), becomes law, beginning Jan. 1, 2018, the Department of Revenue will adopt rules implementing a system that allows a business to remit one payment per month to DOR for any tax, fee, charge, or assessment if the total amount is more than $50,000 per year and it is owed to at least 25 assessing entities.
Several entities including lobbyist Claudia Sands of Centurylink testified on behalf of the bill.
“We write 400 checks per month right now, and this bill could get that down to one,” Sands testified.
“The Missouri Chamber and its policy council has made this legislation a priority and has fought for the passage of the bill to ease the burden on small business owners,” Tracy King, vice president of governmental affairs for the Missouri Chamber, said. “This bill will make it easier for businesses to comply with regulations and cut costs that unduly burden businesses.”
The bill would phase in the plan by only accepting the first 25 qualifying businesses that apply the first year, 100 qualifying businesses that apply the second year, and all qualifying businesses that apply beginning the third year. The department must distribute the payments no later than 15 days after receipt of the payment and can collect an administrative expense fee from the business of up to 1% of the amount remitted.
For more information please contact Ms. King at email@example.com or by phone at 573-634-3511.