IRS. For example, one match program compares taxpayers who filed a
federal tax return using a Maryland address to the state's records to ensure
that all taxpayers who are required to file a Maryland return do so.
Matching state and federal data has always been an extremely pro-
ductive and cost effective way to ensure compliance with revenue laws.
But matching on a main frame computer can be difficult because of the
programming resources needed. The STAX software greatly speeds the
process by housing at least three years of complete federal and state data
side by side in a PC. This allows programs to be developed and run in
minutes rather than in weeks. The delinquent taxes the Comptroller's
Office collected from just one matching program run on STAX was more
than enough to cover the cost of the software.
STREAMLINED SALES TAX PROJECT
Comptroller William Donald Schaefer strongly believes in creating
a level playing field for Maryland businesses and in finding a fair and work-
able solution to the issue of taxation of Internet sales. He supported
legislation that allows his office to work with other states in developing a
voluntary, multi-state, streamlined sales tax collection and administra-
tion system.
By 2003, under the current system, Maryland will lose an estimated
$148.5 million - enough money to build 21 new elementary schools - to
untaxed Internet sales.
"Untaxed Internet sales put Maryland businesses and the thousands
of people they employ at a competitive disadvantage," the comptroller said.
"And people who cant afford computers and Internet access pay the tax
that those who are better off can avoid. That's just not fair. A simplified
sales tax system would be the first step in dealing with the growing impact
of e-commerce and ensuring a level playing field for Maryland business
and equity for Maryland taxpayers."
Serving the People
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