State Auditor Says Missouri Tax Policy is Inefficient

Intro:	A Missouri State auditor’s report estimates that tax credits and exemptions can be much larger hits to the state’s budget
RunTime:	1:01
OutCue:	SOC

Wrap: The legislature estimated that a Senate bill would costMissouri just over thirty million dollars in its first two years. The corporatetax bill has so far cost one hundred and seventy-seven million.

Missouri’s Department of Revenue is not required to reviewthe effect of any tax credit or exemption on the state’s income. A report fromState Auditor Nicole Galloway says the department currently reviews threeexemptions out of two hundred and nine.

Galloway said Missourians want to know if businessincentives are working the way legislators said they would.

Actuality:	GALLOWAY11.WAV
Run Time:	00:13
Description: It’s a very worthy goal to want to have a good business climate here in the state of Missouri, I think that’s something that we can all agree on, a goal that we want to meet. But taxpayers want to make sure they get a good return on their investment.

Reviewing tax credits would allow citizens to see if theyworked to bring in business.

The Department of Revenue says the requirements would burdenbusinesses; have too many inaccuracies and require an employee increase.

Jack Morrisroe. Newsradio 1120 (eleven twenty) K-M-O-X

Intro:	An audit report says Missouri’s discounts for paying sales tax and employee withholdings on time hurt the state’s budget
RunTime:	0:55
OutCue:	SOC

Wrap: The two-percent discount for businesses paying sales tax ontime is the second largest in the nation. Only Colorado has a larger discount.

If Missouri put a two thousand, five hundred dollar cap on thatdiscount, it would increase last year’s state revenue by almost twenty-eightmillion dollars, on top of local increases.

Missouri State Auditor Nicole Galloway said the discounts areunnecessary.

Actuality:	GALLOWAY14.WAV
Run Time:	00:12
Description: Offering millions to businesses for making timely payments, something they’re already required to do and will be penalized for if they do not, is not likely to result in better compliance for the state.

The state also gives a discount for paying taxes withheldfrom employees on time. It is the only state in the union to offer thatdiscount.

Galloway is up for reelection in 2018. She is the onlycurrent Democrat in elected statewide office, although Governor Jay Nixonappointed her in 2015.

Jack Morrisroe. Newsradio 1120 (eleven twenty) K-M-O-X

Intro:	If you’ve spent more than two thousand tax-free dollars on Amazon, you’re supposed to pay tax to Missouri.
RunTime:	0:52
OutCue:	SOC

Wrap: Use tax is required for tax-free purchases made online,over-the-phone and over-the-border. A separate form has to be filed with anincome tax form.

The number of families paying these use taxes has decreasedto less fifteen hundred. A University of Missouri study estimated that thestate lost 358 million dollars in 2014 taxes because of online sales.

A report from Missouri State Auditor Nicole Galloway saidthe interstate Streamlined Sales and Use Tax Agreement would help the stategenerate revenue it already requires.

Actuality:	GALLOWAY15.WAV
Run Time:	00:12
Description: Our analysis suggests that states that are similar in size to Missouri that have joined through legislative action are averaging about eighteen million dollars a year in additional revenue.

The national Sales Tax Institute says that all forty-fivestates that require a sales tax also require a use tax.

Jack Morrisroe. Newsradio 1120 (eleven twenty) K-M-O-X