An Act Requiring The Department Of Revenue Services To Hire Additional In-house Auditors.
Impact
If enacted, HB 5987 would have significant implications for state law regarding tax administration and revenue collection strategies. It is expected to bolster the workforce within the Department of Revenue Services, enabling the agency to more effectively audit taxpayers and businesses. This increase in human resources is likely to facilitate a more robust mechanism for ensuring tax compliance, which can have positive ripple effects on state budgetary health and public services, contingent on the increased revenue collected due to these efforts.
Summary
House Bill 5987 is aimed at addressing the state's tax collection efficiency by mandating the Department of Revenue Services to hire an additional fifty in-house auditors. The primary goal of this bill is to close the state's tax gap, which refers to the difference between the taxes owed and the taxes actually collected. By increasing the number of auditors, supporters of the bill argue that the state will be better positioned to evaluate tax compliance, collect unpaid taxes, and assess any applicable penalties and interest, thereby enhancing overall revenue for state operations.
Contention
While supporters champion the bill for its potential to increase state revenues and enhance tax fairness, there may also be points of contention surrounding the additional hiring. Critics might raise concerns regarding budgetary constraints or the efficiency of allocating resources towards increasing the number of auditors rather than reforming existing processes. Additionally, discussions may center on the balance between aggressive tax collection tactics and the implications for taxpayers, particularly small businesses. In such discussions, the overall effectiveness of expanding the auditor workforce versus adopting new technologies or compliance programs to close the tax gap may also surface.