2008-04-16 15:53:53.323

Taxes, Debts Collected Year-Round From Lottery Prizes

Along with generating millions in revenues for Missouri’s public education programs, the Missouri Lottery routinely collects millions in state and federal withholding taxes, delinquent child support payments, back taxes, claims and restitution and incarceration fees. During the first three quarters of the most recent fiscal year - July 2007 through March 2008 - the Lottery has collected $2.8 million in state taxes on prizes and more than $136,763 in debts owed the state and its citizens.

“In addition to the 27 cents of every dollar in sales that goes to help fund public education, the Missouri Lottery collects millions in additional state revenues in taxes on the prizes,” said Larry Jansen, executive director of the Missouri Lottery. “The Lottery also conducts debt offsets to collect delinquent child support payments, delinquent state taxes, incarceration fees, claims and other restitution.”

Jansen said that while it is helpful to collect taxes rightfully owed the state, it is especially gratifying to be able to help Missouri parents collect child support payments owed them. “There are many parents trying to make ends meet, and collecting these monies is a tremendous benefit to them,” he said.

During the previous fiscal year, more than $8.8 million in taxes was withheld from prizes, and more than $176,000 in delinquent payments were collected.

  FY08 to date

(July 2007 - March 2008)
State Tax Withholdings $2,791,207 $8,821,399*
Recovery of debts due MO:    
State back taxes $92,703.63 $83,536
Child Support $38,491.15 $89,145
Claims and restitution $1,250 $0
Incarceration fees $4,318.25 $3,536
Total debts recovered: $136,763.03 $176,217

*FY07 included a Powerball jackpot prize paid of $254 million ($120 million in cash value) 

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