The 2009 Executive Budget Document
Department of TaxationMission Statement
The Virginia Department of Taxation’s mission is to serve the public by administering the tax laws of the Commonwealth of Virginia with integrity, efficiency, and consistency.Operating Budget History
|General Fund||Nongeneral Fund||Positions|
|2005 Appropriation||$ 81,690,979||$ 32,605,335||935.50|
|2006 Appropriation||$ 81,425,023||$ 21,476,094||908.50|
|2007 Appropriation||$ 86,054,998||$ 12,579,537||945.50|
|2008 Appropriation||$ 86,771,193||$ 9,315,597||946.50|
|General Fund||Nongeneral Fund||Positions|
|2009 Base Budget||$ 87,758,062||$ 9,519,328||946.50|
|2009 Addenda||$ 153,459||$ 0||50.00|
|2009 Total||$ 87,911,521||$ 9,519,328||996.50|
|2010 Base Budget||$ 88,218,562||$ 9,519,328||946.50|
|2010 Addenda||$ 1,093,644||$ 804,100||50.00|
|2010 Total||$ 89,312,206||$ 10,323,428||996.50|
Recommended Operating Budget Addenda
Appropriate nongeneral fund revenue for the administration of the Land Preservation Tax CreditProvides the agency with a nongeneral fund appropriation for the recovery of the costs of administering the program, as provided for in statute. For 2010, $579,100 (NGF).
Relocate department staff to Main Street CenterProvides funding to cover unbudgeted costs associated with the consolidation of the Department of Taxation's administrative functions in Main Street Center. For 2009, $2.0 million (GF). For 2010, $83,032 (GF).
Reflect Governor’s October reductions in agency budgetsReflects the reductions approved by Governor Kaine in October 2008 for 2009 and the corresponding continuation of savings in 2010. See Part D of this document for reduction details. For 2009, a decrease of $1.9 million (GF) and an increase of 50 positions. For 2010, $1.2 million (GF) and $225,000 (NGF).
Implement targeted reductionsImplements targeted reductions for 2009 and 2010 included in Governor Kaine's 2008-2010 Budget Reduction Plan. Reduction details can be found in Part D of this document. For 2010, a decrease of $221,987 (GF).
Strike obsolete languageRemoves authority to spend revenue collected in certain authorities from the sales tax on fuel, and the retail sales and use tax imposed on vehicle repair and labor services. The Virginia Supreme Court declared the enabling legislation unconstitutional.
Budget Reduction Strategies
October Reduction Strategies
Delay processing paper returns
Reduce the volume of temporary employees used during tax filing season and eliminate one wage employee. This strategy will not impact the processing of electronically filed returns.
FY 2009 FY 2010 General Fund Savings $ (75,752) $ (151,504)
Eliminate positions throughout the agency
Eliminate five positions and layoff two employees. The five positions that will be eliminated are non-compliance positions. The incumbent of one of the positions is retiring.
FY 2009 FY 2010 General Fund Savings $ (44,255) $ (212,685) Position Changes (5.00) (5.00) Layoffs 2 0
Implement enhanced compliance initiative
Provides funds and positions to initiate new and enhanced compliance programs to increase tax revenue collections. The new and enhanced programs will include increased audit programs. It is anticipated that this initiative will generate over $21 million for the biennium.
FY 2009 FY 2010 General Fund Savings $ 1,220,569 $ 4,590,769 Revenue / Transfers $ 1,200,000 $ 21,674,297 Position Changes 55.00 55.00
Recover costs of administering the Communication Sales and Use Tax and Railroad and Pipeline programs
Recover all administrative costs associated with the Communications Sales and Use Tax and Railroad and Pipeline programs. In this strategy, the agency will recover 100 percent of its costs associated with administering these programs.
FY 2009 FY 2010 General Fund Savings $ (115,855) $ (115,855) NGF Appropriation $ 0 $ 225,000
Reduce agency training
Reduce training on technical platforms and tax policy training.
FY 2009 FY 2010 General Fund Savings $ (306,783) $ (306,783)
Reduce building security
Reduce funding for private security at each of the agency's three primary locations in the Richmond area.
FY 2009 FY 2010 General Fund Savings $ (138,496) $ (138,496)
Reduce discretionary nonpersonal services costs
Reduce recruitment, supplies, equipment, and travel costs.
FY 2009 FY 2010 General Fund Savings $ (282,684) $ (324,860)
Reduce information technology costs
Reduce funding for testing, consultants, and software purchases. Savings assume the Virginia Information Technology Agency (VITA) will pay for the agency's conversion to Microsoft Exchange. The agency will discontinue the consultants for many of its information technology programs and eliminate the purchase of software designed to monitor system performance.
FY 2009 FY 2010 General Fund Savings $ (1,716,000) $ (1,766,000)
Reduce wage payroll
Eliminate 14 wage positions throughout the agency. This action is not anticipated to impact revenue collections.
FY 2009 FY 2010 General Fund Savings $ (280,281) $ (321,275)
Reduce work hours and capture vacancy savings
Convert four classified positions to 32 hour positions and capture additional vacancy savings. The agency will defer filling the director of tax processing position.
FY 2009 FY 2010 General Fund Savings $ (120,712) $ (20,712)
Transfer court debt and land preservation tax credit revenue
Transfer an additional $500,000 in court debt revenue, and $500,000 in land preservation tax credit revenue to the general fund. The agency currently transfers excess court debt revenue to the general fund; the transfer of land preservation tax credit revenue is new. A fee is assessed and paid to the Department of Taxation when a taxpayer holding land preservation tax credits transfers such credits. This fee supports Taxation's and the Department of Conservation and Recreation's costs incurred in administering the program.
FY 2009 FY 2010 Revenue / Transfers $ 1,000,000 $ 1,000,000
December Reduction Strategies
Increase transfer to the general fund from the court debt program
Increases the transfer to the general fund from the court debt program by an additional $700,000 in FY 2009.
FY 2009 FY 2010 Revenue / Transfers $ 700,000 $ 0
Remove additional funding for pay practices
Removes the half-percent pay practices funding granted to Executive branch agencies in the 2006-08 biennium.
FY 2009 FY 2010 General Fund Savings $ 0 $ (221,987)