Minnesota Initiative Successful With Sales Tax Collections
- Feb 6, 2012 | Susan McLain
In 2010, the Minnesota Legislature appropriated $6.7 million for the 2011 fiscal year that would be dedicated to an expanded tax compliance initiative. This appropriation was for the Department of Revenue to step up tax enforcement activities. This week, the Minnesota Department of Revenue released their report to the Minnesota State Legislature on the results of their 2011 initiative activities.
According to the report, “[a]s of June 30, 2011, the Department has collected $40.6 million, or 151 percent of anticipated $26.9 million for the fiscal year.” This exceeds their goal by over $13 million—all while spending only $6.3 million of the appropriated amount to accomplish the task.
What activities brought the most revenue from this initiative?
- Identifying non-filers--the Department identified 337 non-compliant sales and use tax payers.
- Increasing audit and collections.
- Increasing delinquent tax collection activities.
Of the $40.6 million collected, $11.5 million was gathered from initiative sales and use tax activities—639% of the estimated $1.8 million target. This was the highest over-target goal met out of all the initiative revenue results. To view the results and read the report, click here.
Overall, the Department’s strategic plan “…is to ensure that everyone voluntarily reports and pays the right amount of tax: no more, no less.” According to Commissioner Myron Frans, “Key strategies [to achieve this plan] include simplifying tax laws, obtaining better data, providing quality service, improving enforcement tools, creating better forms of information reporting and the improved use of technology tools such as tax analytics.”