MO Auditor finds inaccuracies in Department of Revenue's computerized system

MO Auditor finds inaccuracies in Department of Revenue's computerized system
Missouri's Auditor finds inaccuracies in computerized systems

MISSOURI (KFVS) - On Aug. 21 the Missouri State Auditor Nicole Galloway released an audit of the state's sales and use tax collection processes administered through the Department of Revenue.

The report found inefficiencies affecting citizens at license offices throughout the state, especially in rural counties.

"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," Auditor Galloway said. "Taxpayers deserve an efficient and effective system regardless of where they live."

After a vehicle is purchased, the taxpayer is required to title and pay state and local sales tax. The Department of Revenue relies on a computerized mapping system to assign the appropriate local tax rate.

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According to officials with the auditor's office, in 15 counties that include rural communities, the system is often inaccurate, requiring taxpayers to produce additional proof of their residency in order to pay the correct rate. Even after the information is provided, the address location is frequently not corrected in the system.

This means the potential of repeatedly having the same errors, requiring taxpayers to once again produce additional documentation on future transactions.

The report also recommended changes to state law after a repeat finding regarding refunds on sales tax over payments. This audit covered the 2015 through 2017 fiscal years, and lists the overall performance rating as "good."

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