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Committee backs electronic filing system for municipal B&O taxes with $30 million participation threshold
Summary
Committee counsel told senators HB 44-18 would let the Tax Commissioner build an electronic filing and payment platform for municipal B&O taxes once municipalities representing $30 million in expected annual revenue commit; a 1% administrative fee is authorized to offset costs and a fiscal note estimated annual costs of $196,000.
The Senate Committee on Government Organization voted to report House Bill 44-18 after counsel explained the measure would authorize the Tax Commissioner to design and implement an electronic data processing system to facilitate filing and collection of municipal business-and-occupation (B&O) taxes.
Committee counsel said the system would be required once municipalities representing an aggregate $30,000,000 in anticipated annual B&O tax revenue have committed to participate and that the system must be available for use the July 1 following at least 12 months after the threshold is reached. The Tax Commissioner may retain a 1% administrative fee of gross collections for participating municipalities. Counsel cited a fiscal note estimating annual system costs of $196,000 and noted that fee revenue could generate roughly $300,000 to offset those costs.
Senator from Summers asked whether the bill authorizes new B&O taxes or merely modernizes payment; counsel responded, "This is strictly a payment mechanism." The vice chair moved the bill be reported to the full Senate with referral to the Committee on Finance under the bill's double committee reference; the motion carried on a voice vote.
