House Advances Tax Amnesty Program

The Missouri House voted to send the Senate a new revenue policy being championed by budget hawk Representative Tom Flanigan (R-Carthage).  Rep. Flanigan initially proposed the idea of tax amnesty in the 2011 legislative session as a way to help increase revenues without raising taxes.  I think it is an intelligent idea and it will help us fund many critical services. 

 

How does it work?

 

Upon its passage and the Governor’s signature, the Department of Revenue will begin working to advertise and implement the necessary program requirements to offer the general public an amnesty opportunity.  That is, if you owe back taxes, you can make arrangements with the Department to pay them with all interest and penalties will be waived. 

 

What if the taxpayer fails to pay?

 

Rep. Flanigan and the rest of the Republican-led legislature understand that some folks want to make right on their tax bills.  But we also know that we can’t provide amnesty without expecting taxpayers to continue to pay their taxes just like their neighbors, you, and I.  We added some safeguards to encourage those who have a debt to pay it, but also to ensure they don’t fall back into the red later down the road.  In fact, if in any of the eight years after a taxpayer participates in the amnesty program they fall behind again, all prior interest and penalties will be reapplied.  Additionally, language was added that will ensure that a taxpayer who receives amnesty on a certain tax will not be able to participate in any future amnesty programs for that same tax.  We think this is a good way to encourage positive changes, be considerate of those burdened by tough times from the recession, and bring folks up to par and paying their fair share like their neighbors. 

 

How much will the state generate?

 

Estimates have ranged from $55 million to more than $70 million in additional revenues that the state will receive if it offers the amnesty program.  Those funds will help balance the budget without a tax increase – a promise you’ve asked for, we’ve made, and we continue to keep.