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Missouri to require business notification of tax changes

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Gov. Jay Nixon.

JEFFERSON CITY, Mo. (AP) _ A bill to require Missouri’s tax collection agency to notify affected businesses of changes in tax policy has been signed into law.

Democratic Gov. Jay Nixon on Monday signed the legislation.

Sen. Will Kraus, a Republican from Lee’s Summit who sponsored the bill, says it will end what he called notification by audit.

Business owners have complained that the Department of Revenue sometimes changes its policy on items for which sales tax should be charged, and they aren’t aware of the changes until they are audited.

The measure will require the department to contact all business owners who could be affected by a change to sales tax law interpretation if a “reasonable person” would not expect the modification.

Notification could be via mail, email or a secure electronic communication.

The tax notification bill is SB 18.