Creates provisions relating to grace periods for payment of businesses overdue sales tax
The bill amends Chapter 144 of Missouri Revised Statutes, adding a new section that outlines the mechanics of the grace period. During these ninety days, late fees and interest on the overdue amount will be waived. However, businesses will need to repay the overdue sales tax incurred during this grace period in twelve equal installments over a year. The intent behind this legislation is to alleviate the financial strain on businesses that may be struggling to recover from the economic fallout of the pandemic.
House Bill 2491 is designed to provide relief to Missouri business owners who have experienced hardships due to the pandemic by introducing a grace period for the payment of overdue sales taxes. Under the bill, business owners can request a ninety-day grace period during which they will not face penalties for late payment of sales tax if they continue to make timely payments on the amount due. Additionally, this grace period is aimed specifically at those who have lost their business licenses due to tax non-compliance arising from pandemic-related issues.
While the bill seeks to offer relief, there may be notable points of contention regarding its implementation and the criteria for eligibility. Concerns may arise about how the rules governing the grace period will be established by the state's revenue department. Specifically, business owners might worry about the clarity and fairness of the application process for the grace period and how it will affect their ability to maintain compliance with sales tax obligations moving forward. Critics could argue that this measure may not adequately address the broader systemic issues faced by many businesses during these challenging times.