A bill to remove the statute of limitations for some businesses that fail to pay sales tax passed the House on a 57-13 vote Monday.
Rep. Charles Cuddy, D-Orofino, said the bill targets retailers who collect sales tax but don’t turn it over to the state. Under current law, they can keep filing extensions on their taxes until the three-year statute of limitations runs out.
“If you say you’re collecting money for the state, you ought to have to give it to the state,” Cuddy said.
There is no statute of limitations for those who don’t file their sales tax returns. But there is one for sellers who file returns but don’t pay up.
Voting in the minority was Rep. Jeff Alltus, R-Coeur d’ Alene. “There’s got be some kind of limit,” he said. “What about cases where Grandma’s died 30 years down the road? It’s not a real good idea.”
Alltus said he would prefer a seven-year statute of limitations.