State agencies are failing to meet reporting requirements involving $1 billion-plus in tax incentive programs they administer, the Legislative Auditor’s Office said Monday.
State law requires agencies to annually report to the Legislature the return on investment for their tax incentives and whether the incentives met their intended purpose.
The auditor’s compliance report found the agencies’ response sorely lacking.
Seventy-nine incentives are administered by six agencies subject to reporting requirements, the auditor said.
The agencies are the state Departments of Revenue, with 47; Economic Development, 21; Children and Family Services, 5; Culture, Recreation and Tourism, 3; Environmental Quality, 2; and Education, 1.
“Of the 79 tax incentive reports agencies were required to submit to the Legislature by March 1, 2014, 70 (89 percent) reports were either not submitted or did not comply with all of the reporting requirements,” the auditor said.
Of the eight that did not get submitted, the Department of Economic Development did not submit six. The Department of Revenue and the Office of Culture, Recreation and Tourism each failed to submit one.
“Based on the amounts provided in the 2013-2014 Tax Exemption Budget, these 70 tax incentives claimed in fiscal year 2013 for which agencies provided no information to the Legislature or did not comply with reporting requirements totaled approximately $1.1 billion,” the report said.
The report also said three of the six agencies submitted reports as of March 15 providing information on five of the 79 tax incentives. They were Education, DEQ and CRT.
The revenue loss reported in the 2014-15 for the tax incentives with no report was approximately $1.3 billion, the auditor said.