SENATE BILL REPORT

SB 5563

BYSenators McDonald, Gaspard and Rasmussen; by request of Department of Revenue

Modifying tax return due dates.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 27, 1989

Senate Staff:Terry Wilson (786-7715)

AS OF FEBRUARY 27, 1989

BACKGROUND:

Sales and use taxes, business and occupation taxes, and public utility taxes are reported on a combined excise tax return and are due on a monthly, quarterly, or annual basis.  Monthly reports are due on the 25th day of the following month.  Quarterly and annual reports are due on the 30th day of the month following the end of the period.  Reporting frequency is determined by the department based on tax liability.  In addition, the tax on the commercial possession of food fish and shellfish and the leasehold excise tax are due on the 15th day of the following month.

These differing reporting dates result in workload volume variations for the Department of Revenue.  Processing slows down during periods of high volume due to insufficient staff support, especially when monthly, quarterly, and annual returns are due, and idle staff time is generated during slow periods.

To even out the workload, the Efficiency and Accountability Commission recommended (1) changing taxpayer reporting frequency to reduce the number of taxpayers reporting quarterly, and (2) moving the due dates for monthly taxpayers to the 20th of the month.  Legislation is not required to change taxpayer reporting frequencies.

SUMMARY:

The due date for monthly taxpayers for taxes reported on the combined excise tax return is moved to the 20th for periods beginning in September, 1989.  The due dates for the tax on the commercial possession of food fish and shellfish and the leasehold excise tax are changed to coincide with the due dates for taxes reported on the combined excise tax return.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available