Inefficiencies exist at license offices in rural areas including Miller, Maries and Camden counties, according to an audit of Missouri's sales and use tax collection processes administered through the Department of Revenue released Tuesday by State Auditor Nicole Galloway's office.
The audit noted similar problems in 12 other counties - Benton, Cedar, Crawford, Douglas, McDonald, Madison, Ozark, Pulaski, Schuyler, Shannon, Stone and Webster.
"Taxpayers should not have to provide the same documentation time and time again just to ensure they are not overcharged on tax for a new vehicle," Galloway said in a news release. "Taxpayers deserve an efficient and effective system regardless of where they live."
After a vehicle is purchased, a taxpayer is required to title and pay state and local sales tax. The Department of Revenue (DOR) relies on a computerized mapping system to assign the appropriate local tax rate.
However, Galloway's audit found that in these 15 rural counties the system is often inaccurate, requiring taxpayers to produce additional proof of their residency in order to pay the correct rate. Even after the information is provided, the address location frequently is not corrected in the system, according to the audit. This means the potential of repeatedly having the same errors, requiring taxpayers to once again produce additional documentation on future transactions.
The report also recommended changes to state law after a repeat finding regarding refunds on sales tax overpayments.
This audit covered the 2015-17 fiscal years and lists the DOR's overall performance rating as "good."
That rating indicates the auditor's report contains few major violation findings and that DOR has indicated most or all recommendations have been or will be implemented.