The act authorizes the Director of Revenue to choose to send certain documents by first class mail, if the director sent at least one notice of deficiency or assessment by certified mail to the last known address.

The Director of the Department of Revenue is authorized to retain one percent of the amount of any local sales or use taxes collected by the department for the cost of collection.

Beginning January 1, 2013, a statement of no tax due will be required for the issuance or renewal of all city and county occupation licenses as well as all state licenses required to conduct business. Such statement must be dated not more than ninety days from the date of application for license to be valid. Instead of requiring the statement of no tax due, the Director of Revenue is required to enter into an agreement with any state agency responsible for issuing any state license requiring the agency to provide the department with the name and tax identification number of each applicant for licensure within one month of the date the application is filed or at least one month prior to the anticipated license renewal. If an applicant is delinquent on any taxes, the department director must send a notice to the licensing agency and the applicant. An applicant's license must be suspended within 90 days after the notice unless: the taxes are paid; an arrangement has been made with the department to pay the taxes; the taxes were paid under protest; or the tax liability is found to be reasonably disputed.

The act provides taxpayers with amnesty from the assessment or payment of all penalties, additions to tax, and interest on delinquencies of unpaid taxes administered by the department which occurred on or prior to December 31, 2011. To receive amnesty under the act, a taxpayer must: apply for amnesty; file a tax return for each tax period for which amnesty is requested; pay the unpaid taxes in full from August 1, 2012, to October 31, 2012; and agree to comply with state tax laws for the next eight years from the date of the agreement. All new revenues resulting from the tax amnesty program will be deposited into the General Revenue Fund unless otherwise earmarked by the Missouri Constitution or by state statute.

The Director of the Department of Revenue and the Commissioner of the Office of Administration may enter into a reciprocal agreement with the federal government or any other state to offset vendor and contractor payments for any type of debt owed to the state. Currently, the department has a reciprocal agreement with the United States Treasury to offset income tax overpayments.

State agencies, community college districts, and state and municipal courts may refer any debt owed to them to the Department of Revenue for collection. The department and the referring state agency may exchange necessary information but must comply with federal and state laws regarding the confidentiality of information and records. The department may compromise any referred state debt and use all general remedies afforded creditors of Missouri, remedies specific to the referring state agency, and remedies afforded the state in general.

The department can employ staff, attorneys,, prosecuting attorneys, and private collection agencies to aid in the collection of debt. The department must add 10% to the amount of debt to be collected for the cost of collection which may be waived under certain conditions. Collections costs shall be deposited in state general revenue.

Anyone making a claim or having a judgment under the provisions of the State Legal Expense Fund must have a no-tax due statement from the department before any moneys can be expended from the fund for the settlement of any liability claim. The act allows an offset from the State Legal Expense Fund to satisfy any delinquent tax debt owed before payment is made to the person. Payments of $10,000 or less from the fund for property damage claims are not required to have a no-tax due statement.

The director of revenue may issue an administrative garnishment once he or she has filed a certificate of lien in the circuit court for delinquent income or sales or use taxes. Any person receiving this order must turn over any of the taxpayer's assets in his or her possession and any assets that are to become due the taxpayer including wages, salaries, commissions, bonuses, workers' compensation benefits, disability benefits, pension or retirement payments, and interest less a fee to cover costs of no more than $6 per month. The taxpayer may obtain relief from the garnishment by paying the total amount owed.

This act also modifies the procedures for seeking a refund of sales taxes, penalties , or interest collected or computed in error or illegally. The Director of Revenue is required to hold a refund claim unprocessed at a taxpayer's request pending the outcome of legal proceedings on the same or similar grounds or transactions. A purchaser is allowed to submit a claim for a refund of the sales tax directly to the Director of Revenue. The purchaser is allowed to appeal the decision to deny a refund within sixty days of the date the notice of denial is mailed. A decision of the director to deny a refund claim based solely on the issue of the exemption of the electronic transmission or delivery of computer software that occurred on or after January 1, 2007 will be appealable by the purchaser, if the purchaser appealed by September 28, 2012.

The provision regarding tax amnesty has an emergency clause.

Provisions of this act are similar to provisions of HB 116 (2011) and HCS/SB 117 (2011).

EMILY KALMER