MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG:
Missouri Digital News
MDN.ORG
Mo. Digital News
Missouri Digital News
MDN.ORG:
Mo. Digital News
MDN.ORG:
Missouri Digital News
JEFFERSON CITY - The Department of Economic Development reacted immediately to a report that a tax credit program under its supervision is being abused, director Joe Driskill told the Joint Committee on Tax Policy Monday.
Rick Russell of Steelville, Mo., testified last month that the department displayed no interest when he told one of its employees that a St. Louis business might be abusing state tax breaks.
"The truth is, we took quick action based on the information we had at the time," Driskill said.
A St. Louis Post-Dispatch investigation found that "phantom businesses" have received $2 million worth of tax credits through the Rebuilding Communities program, which is administered by the Economic Development Department. The state Attorney General's office is currently investigating the program.
Russell has testified that the Economic Development Department was slow to react when he told them on May 21 that a St. Louis business was abusing the Rebuilding Communities program. He has also said the department did not notify him of the progress of their internal investigation after he contacted the program's administrator, Sean Burge.
That is an inaccurate assessment, Driskill said. In fact, Burge told his supervisor of the matter the day after he heard from Russell, Driskill said. Russell was not told about the investigation that followed because department officials knew nothing about him, Driskill said.
Russell has said a St. Louis computer store owner offered to help him cheat the Rebuilding Communities program, which offers tax credits for Missouri companies purchasing technical equipment such as computers and medical devices. Rather than take part in the scheme, Russell contacted Burge.
Burge has since been suspended by the Economic Development Department while the state investigation is underway.
Driskill has seen several cases of tax credit fraud at the department, he said Monday. He recommended to the legislative committee that resources be made available so the Economic Devlopment Department can conduct regular evaluations of its tax credit programs to ensure they are being run correctly.
"We look forward to working with you to make reforms because I think that is what the taxpayers of Missouri demand," he said.