Sales Tax Refunds on Rise

Refunds to Missouri businesses, which overpaid sales taxes, have jumped considerably in the past ten years. And the amount being refunded disturbs the State Auditor. More than $47-Million was refunded last year. That compares with just under $9-Million in 1990. State Auditor Claire McCaskill says refunds are only paid when sales tax is overcharged and she not only doesn’t see businesses trying to repay consumers she sees 76 refunds totalling $14-Million triggered by advice given businesses by a consultant. McCaskill points out businesses don’t pay sales tax, their customers do. She says the state legislature needs to end the incentive for businesses to overcharge sales tax so they can reap the benefits of a refund. She suggests funneling the refunds to charity or some other state government fund, such as education or economic development.