5182-S AMS REAR WILS 061

SSB 5182 - S AMD 379

By Senator Reardon

4/15/03 NOT ADOPTED

On page 2, after line 19, strike all material down through line 32 and insert the following:

"(7) A person taking tax credits under this section shall ((make an annual report to the department. The report shall be in a letter form and shall include the following information: Type of activity in which the person is engaged in the county, number of employees in the rural county, how long the person has been located in the county, and taxpayer name and registration number. The report must be filed by January 30th of each year for which credit was claimed during the previous year. Failure to file a report will not result in the loss of eligibility under this section. However, the department, through its research division, shall contact taxpayers who have not filed the report and obtain the data from the taxpayer or assist the taxpayer in the filing of the report, so that the data and information necessary to measure the program's effectiveness is maintained)) file a report to the department of revenue in the month following each calendar quarter containing the following information:

(a) Number of production workers;

(b) Average wage of production workers;

(d) Total sales as measured by taxable receipts for activities subject to the tax credit; and

(e) Total wages for production workers as a percent of total sales subject to the tax credit.

A recipient who fails to submit a complete report under this section is ineligible on a prospective basis for the tax credit. The department of revenue shall notify the recipient in writing by mail that he or she is no longer eligible for the credit. The recipient is ineligible on the effective date of the postmark of the notice letter from the department of revenue. If the recipient satisfactorily completes the report, the department of revenue shall send a letter to the recipient indicating that the basis for the ineligibility has been corrected. The letter from the department of revenue is proof that eligibility has been restored, and eligibility is effective prospectively beginning on the date the letter is postmarked

The department shall compile the information into a report containing aggregated data that does not violate any confidentially provisions and send an electronic copy to all members of the legislature on an annual basis."

--- END ---

EFFECT: Eliminates the requirement of filing an annual report covering type of business activity, number of employees, time located in the county, and taxpayer name and registration number and replaces it with a quarterly report covering the number of production workers, the total wages paid to production workers, sales covered by the special tax rate, and wages as a percent of sales. Failure to file the new report results in loss of the credit.