According to a Department of Revenue (DOR) report from the end of December, new tax auditors hired in the 2015-17 budget cycle generated an 11.8 to 1 return on investment for the state in fiscal year 2019.
The 2015-17 state budget required DOR to annually report to the Joint Finance Committee on the estimated tax revenues generated by and expenditures associated with the 102 audit positions created in the 15-17 budget.
DOR’s focus of the increased audit activity was out-of-state entities. Overall, the new audit positions generated $159.9 million, with an additional $857 million pending in FY 2019. The additional audit collections surpassed the 15-17 budget’s goal of $82 million for 2019. DOR projects audit collections in FY 2020 will be at least $60 million more than FY 2019.
DOR also found that the new billing and collecting agent positions approved in the 2017-19 state budget also exceeded their $26.5 million goal in FY 2019, collecting $27.3 million.