Tax amnesty available again for overdue Missourians

JEFFERSON CITY, Mo. -- Overdue Missouri taxpayers are getting another chance to come clean without paying penalties or interest under a program that last year raked in more than $70 million in overdue taxes for the cash-strapped state.

The so-called tax amnesty period begins today and runs through Oct. 31.

Democratic Gov. Bob Holden last month signed into law legislation that included a tax amnesty provision despite concerns that it would raise close to nothing and that back-to-back tax amnesty periods could encourage people not to pay taxes on time.

Generating revenue

The Republican-led legislature backed the provision because the program generated more than three times the amount of money expected a year ago.

The tax amnesty provision was part of a larger bill designed to generate revenue for the state. The measure contains more than 20 separate provisions that each raise a small amount of revenue.

Last year, the Department of Revenue spent close to $450,000 to promote the tax amnesty program. The department ran radio ads, distributed fliers at summer fairs and mailed material to those who owed taxes.

Spending to gain

This year, the department was authorized to spend up to $75,000 to promote the tax amnesty program. So far, 215 notices have been mailed to eligible taxpayers.

"For eligible taxpayers, it's simple: They pay the state all the taxes, lien fees and bad check charges they owe, and we'll forget about the interest and penalties," said Carol Fischer, director of the Department of Revenue. "They have three months. If they don't pay now, they face additional penalties."

Linda Luebbering, the state budget director, said Thursday that while some money will be collected, it will be far less than the $70 million taken in last year. A state budget estimate put this year's collections at about $10 million but the Revenue Department said it's too early to tell.

"We're not sure what the outcome will be because this is uncharted territory," said Jessica Robinson, a spokeswoman for the department. "This is the first time that we're aware of that a state has done back-to-back tax amnesty."

New money

Luebbering said there is some question how much of the money will be new money -- meaning money that would not have been collected anyway later in the year through penalties.

"It's a one-time solution, it is a reasonable one-time solution, but we have an ongoing revenue problem that we have to solve," Luebbering said.

Those who do not pay their taxes during the amnesty period could face a 25 percent collection fee in addition to any fees or penalties already owed. Delinquent taxes on a vehicle purchase would increase from $100 to $200.

Dec. 31, 2002

Taxes due before Dec. 31, 2002, are eligible for tax amnesty as long as the taxes are not subject to pending civil, criminal of bankruptcy litigation.

"Now is the time to pay, any and all, debt owed to the state," Fischer said. "Without exception, Oct. 31 is the tax amnesty deadline."

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On the Net:

Department of Revenue: http://www.dor.state.mo.us