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HB 3402

Allows collector to waive fees and penalties if tax payer made a good faith effort to pay

2026 Regular Session Introduced by Eric Woods

Allows the tax collector to waive certain fees and penalties when a taxpayer demonstrates good faith efforts to pay.

Referred: Emerging Issues(H)
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Bill Summary · HB 3402

Bill Overview

HB 3402 (2026, Missouri) seeks to authorize the collector to waive fees and penalties when a taxpayer demonstrates a good faith effort to pay. The bill is sponsored with a co-sponsor noted as Eric Woods and progressed through the Missouri General Assembly in early 2026, with referrals and readings in the House.

Purpose and Intent

  • The primary aim is to provide relief for taxpayers who have attempted to pay their taxes but faced difficulties preventing full payment of outstanding amounts.
  • By authorizing waivers of accrued fees and penalties in cases of good faith payment effort, the bill intends to improve taxpayer equity and potentially enhance voluntary compliance by acknowledging circumstances beyond a taxpayer’s control.

Key Provisions

  • Authority for Waivers: The bill grants or clarifies discretionary authority for the tax collector to waive certain fees and penalties in response to a taxpayer’s documented good faith effort to pay.
  • Conditions for Waiver: While exact criteria are not detailed in the summary, the clause implies evaluation of the taxpayer’s sincere attempts to satisfy tax obligations, potentially including factors such as partial payments, payment plans, timely communication, and documented circumstances preventing full payment.
  • Scope of Waivers: The provision covers penalties and related fees associated with tax debt; it does not explicitly state whether interest, principal, or other charges are included or excluded, leaving the exact scope to implementing rules or interpretations.
  • Implementation and Oversight: The bill designates the collector as the decision-maker for waivers, implying administrative rules would govern submission, review, and documentation requirements, as well as any necessary appeals or reconsideration processes.
  • Relationship to Existing Law: The bill appears to modify the discretion currently held by the collector regarding penalties and fees, potentially creating an explicit statutory basis for waivers in good faith cases.

Who Would Be Affected

  • Taxpayers with outstanding tax debt who have made bona fide efforts to pay would be eligible for consideration of fee/penalty waivers.
  • The Missouri Department of Revenue or local tax collectors who administer penalties and fees would implement the waiver process.
  • Potentially, taxpayers in financial hardship who previously faced automatic penalties may benefit from relief upon meeting good faith criteria.

Procedural and Timeline Aspects

  • Introduction and First Reading: February 24, 2026.
  • Second Reading: February 25, 2026.
  • Referred to Committee: Emerging Issues (H) on May 15, 2026.
  • Next steps for the bill would typically include committee hearings, potential amendments, and floor votes, followed by potential passage to the Senate and eventual signing or veto by the governor.

Potential Impacts and Considerations

  • Administrative Clarity: The bill’s effectiveness will depend on clear criteria and processes for assessing “good faith,” including what documentation is required and how waivers are calculated.
  • Revenue Impact: Waivers could reduce penalties in some cases, potentially affecting short-term penalties collected; agencies may need to balance enforcement with relief.
  • Equity and Compliance: If implemented with clear standards, the measure could improve taxpayer trust and encourage timely future payments among those who struggled but demonstrated responsibility.
  • Public Policy Implications: The bill signals a policy preference for individualized relief in cases of genuine payment challenges, potentially influencing how penalties are perceived and administered.

If you would like, I can add a section comparing this bill to existing Missouri statutes on penalties and waivers, or outline potential implementing guidelines that agencies might adopt to administer the waiver provision.

Compiled from official sources — confirm details with the bill’s official record.

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