The State of Missouri has collected about $7-million in back taxes. It’s hoping much more comes in before an amnesty period closes at the end of the month.
House Budget Committee Chairman Tom Flanigan (left) and Senate Budget Committee Chairman Kurt Schaefer. (photo courtesy; Tim Bommel, Missouri House Communications)
Missourians have until the end of this month to pay taxes that were due before December 31, 2014, without having to pay interest or penalties. About $60-million in back taxes is owed.
House Budget Committee Chairman Tom Flanigan (R-Carthage) says no one is concerned that only about $7-million has come in.
“Most of the money on tax amnesty will come in at the end,” said Flanigan. “Most people are going to hold onto their money until they just absolutely have to let go of it, but I think the participation rate will be pretty good with it. Certainly we’ll know when the program ends but I’m very optimistic that we’ll hit our goal.”
Senate Budget Committee Chairman Kurt Schaefer says even if the collections fall short, nothing in the budget should go unfunded.
“The governor has a $337-million dollar surplus that we gave him for this year, so even though we built [into the budget’ $68.1-million for tax amnesty, he still has the $337-million surplus on top of that,” said Schaefer.
Flanigan says tax amnesty periods aren’t offered often.
“The last time this program came around was 20-years ago or 25-years ago, so it’s not like it comes up every year,” said Flanigan.
The tax amnesty proceeds were earmarked for adult dental coverage for Medicaid recipients, and Medicaid provider rate reimbursements.