State, Local Government Turning the Screw on Tax Collection

The Washington Post is taking a look at agreesive new tax collection efforts promoted by various state and local governments.

This isn’t a sure-fire way for governments to recoup fiscal losses, however: “Vermont’s results have been mixed. The state reaped about $57 million during the 12 months that ended in June, up from about $50 million five years earlier — a net gain of $7 million. That’s a tiny fraction of the state’s $1.3 billion general fund, but it has helped lawmakers close a budget gap that at the beginning of this year was projected to be $46 million.”

Other states seem to be having an easier time of it.

Idaho has brought in more than $26.3 million in back taxes using collectors, more than double the original estimate of $11.5 million

Oklahoma collected nearly $35 million in delinquent taxes during the 12 months that ended in June

According to Gale Garriott, executive director of the Federation of Tax Administrators, quoted in the Post article, the handful of states that have taken a tough approach by hiring more auditors have generally been rewarded with more revenue. “The return on investment is quite good. They bring in several times more than their salaries.”