A Missouri House committee Tuesday heard testimony on two AIM-priority pieces of legislation passed earlier this session in the Senate.
In a meeting of the House Ways and Means Committee, Ray McCarty testified in favor of Senate Bill 19, legislation clarifying that laws allowing companies an additional choice of formulas used to divide their income between states are available to all regular corporations.
McCarty told committee members that the issue was not helped by direction provided by the Missouri Department of Revenue.
“While the DOR has issued a regulation that the new formula is available to all regular corporations, they have sent letters to some companies saying they believe it only applies if the taxpayer ONLY has income from sales of tangible personal property,” said McCarty. “This corrects this misapplication of the existing tax law.”
Senate Bill 115 allows tax refunds to be paid despite the statute of limitations expiring. McCarty told committee members the issue is fairness.
“We support taxpayers receiving their overpaid tax money any time that money has been overpaid,” said McCarty. “It is wrong for the government to keep tax money that does not belong to the government, simply because the taxpayer did not make the claim in time. This bill ensures fair taxpayer treatment.”
Both bills are sponsored by State Senator Will Kraus (R-Lee’s Summit). The House Ways and Means Committee voted to advance SB 19, but no action was taken on SB 115.