As the state takes over collection of business taxes from local governments, county clerks are having to hold the hands of some businesses through the transition. State and local officials testified at a legislative hearing Wednesday.
The Department of Revenue is streamlining the process of business tax collection and ramping up enforcement on thousands of businesses who aren’t paying.
Some county clerks, like Davidson County’s John Arriola, initially begrudged the change. He now admits the state is better suited to enforce tax law because it can compare federal, state and local tax data. But he says some businesses do need face-to-face contact, which is reduced by the state takeover.
“Those folks that are out there that do need the service and need some assistance in doing these taxes, and of course that’s where we’re working with the Department of Revenue to make sure that happens, to make sure there is still that linkage.”
As part of the streamlining, more businesses are now required to file their taxes online. Revenue Commissioner Reagan Farr says his department has been hit with budget cuts five of the last seven years. With the added duty of overseeing 500,000 business tax accounts, Farr says many more will have to pay online.
“The only way that can be done is by moving to more efficient, electronic tax administration.”
Some legislators have heard complaints from businesses that choose not to invest in computers and Internet access. If they’re small enough, Farr says the department will still allow them to file by mail.
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