May 23, 2012

Gov.-elect Nixon pledges to change fee office culture

Governor-elect Jay Nixon says he will end the patronage system used to appoint who runs the state’s motor vehicle and driver’s license fee offices. He also has announced that he will urge those offices to shift more services to the Internet.

Missouri’s fee offices have long been a prize awarded to those politically connected. Nixon insists his administration will bid them out without regard to political affiliation or campaign contributions. He says that within 24 hours of his inauguration the Department of Revenue will solicit bids. Successful bidders will have to demonstrate efficiency, expertise, flexibility and a willingness to remit a percentage of gross income back to the state.

Nixon also wants modernization. Fee offices will be urged to put as much of their services on the Web as possible so Missourians can renew car or driver’s licenses from their home computers. Arizona and Virginia are sited as states that have put many transactions online.

The Revenue Department will be expected to award about six contracts a week. All fee offices will undergo a transition process.

"Pet Friendly" specialty license plates now available

The State Department of Agriculture has announced a new grant program to help with low-cost spay and neuter services to benefit unwanted dogs and cats. Missourians who want to help out are now able to buy "I’m Pet Friendly" license plates.

To get one of these special license plates, motorists will first pay a $25 contribution to the Missouri State Humane Association and will be issued an emblem-use authorization. The emblem-use authorization can then be submitted to the State Revenue Department along with a $15 specialty license plate fee and an Application for Missouri Personalized and Special License Plate form. A $20 donation will go to the Missouri Pet Spay/Neuter Fund administered by the Department of Agriculture.

Eligible humane societies, local municipal animal shelters, and organizations exempt from federal income taxation are allowed to apply for the funds.

Information on how to make a donation to the Missouri State Humane Association to receive an emblem-use authorization is available on the organization’s website. The "I’m Pet Friendly" plates can be ordered by visiting the Department of Revenue’s license plate page . Information about the pet spay/neuter grant program can be found on the Department of Agriculture’s website .

Download/Listen: Steve Walsh report (:60 MP3)

Judge throws out attempt to cap Revenue Dept fees

An attempt by state lawmakers to cap the fees charged by the Revenue Department for drivers license and motor vehicle records has been tossed by a Jefferson City judge. Cole County Circuit Judge Patricia Joyce has ruled the fee limit provision didn’t fit with the rest of the bill and is unconstitutional. Legislators added the provision to property tax legislation when it came to light that the Revenue Department had been charging $7 a record in May. It had been charging a fraction of a cent for bulk purchases.

State revenues bounce back in May, after big drop in April

Worries in state government about lagging revenue have been relieved for the most part, though budget watchers maintain a wary eye on the future.

Commissioner of Administration Larry Schepker worried about a sharp decrease in sales tax revenue in April and had hoped that a big part of that drop resulted from giving residents in 35 flooded counties another month to file their income taxes. That proved to be the case. Residents filed their income tax returns. Collections from individual income taxes jumped by 30% in May and now are up nearly 7% for the fiscal year. Personal income tax collections have now surpassed $5.2 billion.

Sales and use tax collections for May dropped more than 15 % in May and now are off nearly 3% for the year. Sales tax collections rank number two in state revenue. They are approaching $2 billion at $1.83 billion, but that still is off from the $1.88 billion sales and use taxes raised at this time last year.

Schepker says discretionary income seems to be shrinking. He suspects a lot of money is pouring into our gas tanks and not into the retail buying that the state relies upon to prop up sales tax revenue. Also, with budgets tightening, consumers are sticking with buying essentials, such as groceries and prescription drugs. The state charges no sales tax on groceries in prescription drugs.

Corporate income and corporate franchise tax collections dropped substantially in April, down nearly 17%, and lag about a percent behind for the year. The fiscal year ends June 30th.

Download/listen Brent Martin reports (:60 MP3)

Revenue Department steep fee increase under fire in House

A huge jump in the fees charged to obtain driver’s license and motor vehicle records instituted by the Department of Revenue has come under fire in the legislature.

Three companies that routinely buy the records in bulk have already sued the department, claiming the sharp increase violates the state Open Records law as well as the state and federal constitutions. Revenue Department officials raised the fee charged to obtain the records from $1.25 to $7 May 1 st . They eliminated a deep discount given for bulk purchases.

Members of the Missouri House harshly criticized the department for its actions. Some members contend the increases will hurt consumers. Certain firms purchase the records and sell them to insurance companies and companies that keep track of car histories. One representative predicted the increases, if allowed to stand, will prove counter-productive, because firms would no longer purchase them.

Department officials have contended they need to increase the fees to pay for a new computer system.

The House has overwhelmingly approved a measure to prevent the Revenue Department from increasing the fees any more than a fraction of a cent for bulk sales. The measure has been attached to a property tax relief bill, SB 711 . That bill is in conference with House and Senate negotiators. The outcome of the amendment is uncertain.