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Fairness to Taxpayers-Part II
Sunday, March 7, 2010

Last week the Missouri House passed HB 1408 & 1514. This legislation, which I filed in January, requires the prompt payment of Missouri income tax returns. Current state law allows the government to not return Missourians excess income taxes until August 15th. It does not make sense that we taxpayers will be assessed an interest charge on income tax that is not paid when due and the State of Missouri can hold onto our refunds longer than it take s to process the tax returns.

Last year I received several inquires from constituents about a delay in their income tax refunds. Upon an investigation, I discovered that our Governor had allowed the Missouri Department of Revenue to withhold income tax refunds up to four (4) months. I also came to the conclusion that the reason for the decision was to allow the use these funds to meet the short term financial needs of our State when revenue had dropped as a result of the recession. The lengthy withholding of these income tax refunds due our residents was not the only alternative that the Governor had. The Governor always has a right to cut spending to meet these shortfalls. Instead of cutting spending, he took a no interest loan from all of these taxpayers who were due tax refunds. The constituents who called me had all expected a quicker refund of their overpayment of income tax and they needed the money. This lengthy withholding of tax refunds is wrong and that is why I drafted this legislation. .

If the taxpayers don’t pay what is due the State on April 15th our State assesses interest and penalty. If Missouri doesn’t promptly pay refunds, the State should pay interest on that money. This legislation requires the state to payback income tax returns within 45 days of April 15th, which is how the Federal government operates with tax returns. It is sad for me to report that in this situation the Federal government is more efficient than our state government.

The bottom line is this is your money, the taxpayer's money. Missourians worked hard to earn it and should have a prompt return of their excess taxes. There is no reason for the state government to take longer than the Federal government when it comes to your income tax return. This is the type of the common-sense, reform that will help working Missourians in everyday life.

March 4th was the beginning of the mid-session eleven day break from work at the Capitol. We still have a lot of work remaining when we return. This includes passing a responsible budget and addressing the most pressing needs of Missourians in these difficult times. I appreciate everyone who took the time to complete and return my legislative questioner that I mailed to your households. Hopefully we will be able to complete the review of your responses and report back to you what it says in the next few weeks.