Department of Revenue requests modest operating increases; highlights fraud prevention, hybrid work and modernization gains

At the Feb. 25 House State Government Finance and Policy Committee meeting, Department of Revenue Commissioner Paul Marquardt presented an overview of agency operations and the governors budget request for an operating increase. Marquardt said the department seeks roughly 2% increases in each of the next two years to cover growing expenses and ongoing operations.

Marquardt described the departments workload and recent outcomes: it processes millions of tax returns and refunds annually, said it has stopped about "$30,000,000 in fraudulent filed tax returns from going out the door," and reported that audits, collections and criminal cases produced about $487,000,000 in past‑due tax collections last year. He said the departments administrative cost is low relative to total revenue collection, calling it "about…