Local Sales/Use Tax Interest Distribution
While the Department of Revenue is not required to distribute interest earned in the local sales and use tax account every six months, it has been the practice to distribute the interest earned to political subdivisions in February and August each year. The service fees received by the bank are paid through the interest accumulated in the local sales tax account. Unfortunately, those fees continue to be greater than the interest earned. As a result, there is no interest from the account to distribute to political subdivisions. Although the service fees have been greater than the interest earned, this does not impact the principle amount in the account. The bank's fees cannot exceed the interest earned in the account. The Department will re-evaluate the interest for the August 2012 period.
Any political subdivision with questions, can contact the Missouri Department of Revenue, Local Tax Unit at 573-751-4876 or e-mail at [email protected].