The state’s leading business organization charges the state auditor wants to increase taxes on Missouri employers by two percent. But the “tax increase” argument doesn’t hold up under questioning.
Businesses that collect sales taxes for the state get to keep two percent of the money if they file their Missouri sales tax returns on time. State auditor Susan Montee questions why businesses should keep 93-million dollars a year for doing something they’re supposed to do.
State Chamber of Commerce taxation director Tracy King admits removal of that two-percent withholding would not increase any taxes on businesses or on consumers. It would, however, take away the service fee the state pays businesses to collect those taxes.
King says the two percent doesn’t even cover the expenses of businesses who handle these collections for the state. “The small business who does this, their percentage of costs actually turns out to be thirteen, even thirteen and a half percent,” she says.
She says businesses would be glad to let the state figure out a way to collect its sales taxes itself. And King says there might be alternatives that would, for instance, let companies deduct the collection and payment expenses from their taxes–although she says that has not been discussed by the business community and she’s not sure the legislature would want to make the change anyway.
Hear Bob Priddy’s story :62 mp3 tracyva
Bob Priddy interviews Tracy King 12:14 mp3 tracy6