Tax commissioner runs shared system for local business tax filings

The Tax Commissioner must design and implement an electronic system to help municipalities file and collect local business taxes. The system covers only municipal business and occupation or privilege taxes authorized by this section. The system is an optional platform for municipalities. They keep authority over audits, tax bills, and collecting overdue taxes. The system becomes available only after participating municipalities meet the revenue threshold and the required waiting period.

The Tax Commissioner must implement the system when participating municipalities’ budgets show more than $30 million in combined yearly business tax revenue. The threshold counts anticipated business and occupation tax revenue from municipalities that commit to participate. Municipalities must commit to participate through local ordinances. The Commissioner verifies the threshold using their latest budgets filed with the State Auditor. After confirming the threshold, the Commissioner must make the system available on the July 1 that follows at least 12 months from the determination.

The Tax Commissioner must keep an administrative fee equal to 1% of gross collections for each participating municipality and deposit it into the Tax Administration Services Fund. The fee applies to gross collections for each municipality that participates in the system. The fee covers system development, maintenance, and ongoing administration.