States get more aggressive on taxes

Under Gov. Peter Shumlin, a Democrat, Vermont has added about 10 new tax compliance auditors and has stepped up efforts to scour records in rural areas, and add greater scrutiny to businesses ranging from auctioneers to Internet-based cloud-computing services.

Idaho hired 48 temporary auditors and collectors in fiscal 2011 as part of an effort by Gov. C.L. “Butch” Otter, a Republican, to boost earnings without raising taxes and narrow the so-called “tax gap” - the amount of taxes in the state that are due however go unpaid, either unintentionally or by intent. The added staff brought in more than $26.3 million, more than double the original estimate of $11.5 million. All the positions were made permanent this fiscal year.

Gale Garriott, executive director of the Federation of Tax Administrators, a Washington-based group that tracks state tax policy, said the handful of states that have taken a tough approach by hiring more auditors have usually been rewarded with more revenue.