A state audit has found inaccuracies in a computerized mapping system to assign the correct local tax rate when Missourians title and pay sales tax on their vehicles. State Auditor Nicole Galloway says in 15 Missouri counties, the Missouri Department of Revenue’s computerized mapping system is often wrong and requires taxpayers to give additional proof of their residency in order to pay the correct rate.
“Taxpayers should not have to provide the same documentation time and time again just to ensure they are not overcharged on tax for a new vehicle,” Galloway says. “Taxpayers deserve an efficient and effective system regardless of where they live.”
Even after the information is provided, the location is often not updated in the system – leading to the potential of having the same errors and requiring taxpayers to again give additional documentation during future transactions.
The 15 Missouri counties with continual mapping problems include Benton, Camden, Cedar, Crawford, Douglas, McDonald, Madison, Maries, Miller, Ozark, Pulaski, Schuyler, Shannon, Stone, and Webster.
The report also recommends changes to state law after a repeat finding about refunds on sales tax overpayments. This audit covered the 2015 through 2017 fiscal years.
Galloway’s previous audit of the state’s sales and use tax collection processes was released in 2015 and uncovered about $20 million in cash bonds withheld by the department, which should have been refunded to Missouri businesses. Galloway says the agency has since addressed the issue and improved procedures to ensure businesses are refunded the money they are owed.
The complete report is available here.
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