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Instead of Increasing Taxes, State Trying to Increase Tax Collections

News Channel 7
Wednesday, July 21, 2004

The state Department of Revenue has hired 82 new people to bring in more money that's owed to the state. Most of the new auditors and revenue officers are going through training right now in Columbia, but the agency did hire some auditors it had laid off a few years ago, so they're already at work.

The agency plans to hire 30 to 35 more.

It'll cost the state about $9 million in salary and benefits for the new employees, but they're expected to bring in an additional $90 million in tax collections.

"People who've either cheated on their taxes or accurately filed taxes but not made tax payments should indeed be concerned," says Burnet Maybank, III, director of the state Department of Revenue.

It was his idea to hire the additional tax collectors to give the state more money it desperately needs. When state lawmakers were writing this year's state budget, they referred to those expected additional funds as "Maybank Money".

Lawmakers did not include the extra money in the general budget, just in case what's actually collected is less than expected. But they did write a proviso for how the money will be spent, with some going to most state agencies.

Maybank says that's a lot of pressure on him and the new employees. "And when I see the agency heads who are on the list of agencies to get the money, they remind me and tell me to get to work," he says.

The state will keep track of exactly how much each new employee brings in, to see if the additional expense to taxpayers is justified. Maybank says it will be, based on past experience of how much each revenue officer and auditor brings in.

Revenue officers are basically debt collectors, he says, and they've usually brought in more than their salary within one month of work. Auditors take a little longer to start generating revenue but typically bring in millions of dollars each, he says.

 

 
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