Step Zero: verify the allocation
House Bill 898 directs a review of current allocation practices, discrepancies, financial effects of misallocation, technology, oversight, and statutory recommendations. Step Zero changes no rate and no statutory share.
Credit where due: the Legislature created this review, and it built on prior State investments in local infrastructure.
Six requested reforms
- Statewide review of taxpayer The place where a sale legally counts as having happened — which city gets credit for the sale., municipal The tax-office label that records which city a business's sales belong to., business addresses, Matching a business's street address to the right city boundaries on a map., One company filing taxes for many store locations under a single account, which can obscure which city each sale came from., and material classification exceptions.
- Minimum 36-month How far back in time the review examines past payments., with a longer period where records and law permit.
- Documented correction and Checking two sets of numbers against each other and correcting the differences. method.
- Municipal inquiry and dispute process with response deadlines and written dispositions.
- Secure monthly municipal statements showing gross attributed collections, exclusions, deductions, adjustments, reconciliation items, and net diversion.
- Published statewide control totals and an annual independent controls review without disclosing confidential taxpayer information.
What Step Zero does not do
Step Zero changes no rate and no statutory share. Its purpose is to ensure that each municipality receives what current law already directs.
What the Partnership does propose is a change in the municipal share of revenue already collected, set out on the 30 percent schedule. The tax rate and the taxable base paid by consumers do not change.
Questions from a governing authority are welcome through the secure contact form.