Department calls fee-office plan ‘uninformed’

The plan, announced in Springfield yesterday by Rep. Mark Wright, proposes that fee office contracts be given to nonprofit organizations and government entities because of the offices’ high-yielding profits.

The department calls the plan “incomplete and uninformed,” calling attention to an 18-month effort on its part to improve the system. DOR changes include the requirement of agents to submit business plans and pay for postage, a loss of processing fees if an agent accepts a bad check, the elimination of state subsidies and competitive bidding for contracts, department Director Trish Vincent said in a news release.

Vincent said the plan’s proposal to choose nonprofit or government entities as agents won’t always bring the best results.

“Our emphasis is on customer service, and we want the agent who can best provide it,” she said in the release. “In some cases, that may be a nonprofit – in others, business people with proven customer service experience.”

Vincent says barring contracts between agents and third parties – particularly for janitorial, accounting and employee benefits services – would hurt efficiency.

The legislator’s plan also calls for a waiver of license fees if a customer waits at an office for more than 30 minutes. Vincent said the focus should be on reducing wait times, not on cutting fees.

Vincent also finds fault in the proposal’s suggestion to give the state auditor authority to audit the offices, as she said offices already are subject to monthly visits by DOR.

The plan would require the department to take the customer’s word that personal property taxes have been paid on vehicles, and Vincent said requiring proof of tax payment is a safeguard.

Finally, the proposal calls for the state to take on a massive obligation from counties with no plan to pay for it, Vincent said in the release. The department would have to develop a database for all information necessary for renewing tags, she said.

“Only about 40 counties now have electronic personal property tax records,” Vincent said. “The goal is to take advantage of available technology … but without adding a significant cost burden to the state, this could be an unfunded mandate.”

See SBJ’s July 17 issue for more on the proposed reforms to Missouri’s fee office contracts.