Small business owners in Missouri could soon see promising changes to the state tax code.
Outdated tax codes may soon undergo a full review in Missouri. Senate Bill 15, which aims to take a comprehensive look at the state’s tax code, has jumped its first hurdle after being approved by the Senate Ways and Means Committee on Jan. 29, 2015.
The bill comes in the aftermath of state senate hearings held in Jefferson City and Springfield, where small business owners voiced their concerns of operating under the current tax system and the behavior of the Department of Revenue.
To address these concerns, Sen. Bob Dixon put forth SB 15 to create a commission to study the state’s tax code and a new office to aid Missouri taxpayers. NFIB has testified in front of the Senate Ways and Means Committee in favor of approving the legislation.
Restoring Taxpayer Aid
SB 15 would establish the Office of Taxpayer Advocate, an independent office designed to defend taxpayers. It would replace the current Office of Ombudsman, which has served as a last resort resource “to answer taxpayer questions and help solve taxpayer grievances,” according to the state tax code.
The governor would be responsible for the appointment to the new office with the advice and consent of the senate. If approved, the advocate will work with taxpayers on tax issues and have access to records held at any state agency in relation to these issues. The office will submit a regular report to the governor and the General Assembly outlining its operations and suggestions to modernize the tax code and increase economic development and growth.
A Much Needed Analysis
The Missouri tax code has not been fully reviewed since 1968. Proponents of the bill say comprehensive changes will protect taxpayers, including small business interests. Though the new commission, named the Study Commission on State Tax Policy, wouldn’t immediately benefit small business, it is a promising starting point for future improvements to a burdensome tax system.
Embodied by members of the public with expertise in tax issues, including a few spots for small business owners, and members of the Joint Committee on Tax Policy, the newly formed commission would work to identify strengths and weaknesses of the Missouri tax system before making recommendations to improve it.
In addition, the bill details minor reforms for administrative procedures within the Department of Labor to improve consistency and fairness to taxpayers.
The next stop for SB 15 is the senate floor.
