The 2012 Executive Budget Document
Department of Taxation [ http://www.tax.virginia.gov/ ]Mission 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 Summary
|General Fund||Nongeneral Fund||Personnel Cost|
|2009 Appropriation||$ 87,911,521||$ 9,519,328||$ 68,100,028|
|2010 Appropriation||$ 86,502,030||$ 10,323,428||$ 68,625,028|
|2011 Appropriation||$ 80,343,481||$ 79,095,742||$ 61,179,599|
|2012 Appropriation||$ 78,904,780||$ 80,095,742||$ 60,923,664|
|2013 Base Budget||$ 78,904,780||$ 80,095,742||$ 60,768,664|
|2013 Addenda||$ 3,688,046||$ (66,560,797)||$ 210,489|
|2013 Total||$ 82,592,826||$ 13,534,945||$ 60,979,153|
|2014 Base Budget||$ 78,904,780||$ 80,095,742||$ 60,768,664|
|2014 Addenda||$ 3,441,605||$ (66,560,797)||$ 88,352|
|2014 Total||$ 82,346,385||$ 13,534,945||$ 60,857,016|
|General Fund||Nongeneral Fund||Total Positions|
|2013 Base Budget||955.50||37.00||992.50|
|2014 Base Budget||955.50||37.00||992.50|
Recommended Operating Budget Addenda
Recover costs for Land Preservation Tax Credit administrationRecovers all the costs of two wage positions dedicated to the administration of the Land Preservation Tax Credit (LPC) program from a fee charged for the transfer of LPC credits.
FY 2013 FY 2014 General Fund $ (42,000) $ (42,000) Nongeneral Fund $ 42,000 $ 42,000
Eliminate mapping functionEliminates the mapping unit within the department. Upon request of a locality, the unit develops property tax maps. Alternative service providers are available at the local level or in the private sector.
FY 2013 FY 2014 General Fund $ (156,137) $ (180,504) Resources $ (156,137) $ (180,504)
Optimize field audit staff supervisionEliminates five field office supervisor positions and realigns existing staff resources.
FY 2013 FY 2014 General Fund $ (187,409) $ (224,475) Authorized Positions $ (5) $ (5)
Administer the motor vehicle rental taxEstablishes a nongeneral fund appropriation for the department to accommodate the transfer of the motor vehicle rental tax from the Department of Motor Vehicles to the Department of Taxation. The 2011 General Assembly transferred responsibility for the tax to the Department of Taxation.
FY 2013 FY 2014 Nongeneral Fund $ 36,250,000 $ 36,250,000
Eliminate annual study of the miscellaneous sales tax exemptionsRemoves the annual study requirement.
FY 2013 FY 2014 General Fund $ 0 $ (37,000)
Reduce position levelReduces the agency's position level to more accurately reflect the level of filled positions.
FY 2013 FY 2014 Authorized Positions $ (57) $ (57)
Distribute Central Appropriation amounts to agency budgetsAdjusts the agency budget to reflect amounts moved to or from Central Appropriations to cover the costs of items such as changes in retirement and other benefit contribution rates, as well as the distribution of other centrally funded items.
FY 2013 FY 2014 General Fund $ 532,846 $ 532,846 Nongeneral Fund $ 33,140 $ 33,140
Mandate electronic filing of sales tax payments and returnsMandates sales tax dealers file electronically. Currently, approximately 50 percent of all sales tax dealers file electronically. Sales tax dealers will be able to use the department's website to file electronically for free. A dealer may request a hardship exemption. This will become effective July 2012 for monthly filers and July 2013 for quarterly filers.
FY 2013 FY 2014 General Fund $ (82,760) $ (97,760)
Increase rail and pipeline appropriation to match expendituresIncreases the agency's nongeneral fund appropriation for the recovery of its costs incurred in the administration of the rail and pipeline program.
FY 2013 FY 2014 Nongeneral Fund $ 88,161 $ 88,161
Increase land preservation tax credit appropriationIncreases the nongeneral fund appropriation to recover the agency's costs associated with administering the Land Preservation Tax Credit Program.
FY 2013 FY 2014 Nongeneral Fund $ 25,902 $ 25,902
Transfer distribution of various taxes collected by the Department of Taxation to the Department of Accounts Transfer PaymentsTransfers the appropriation authority for the distribution of the motor vehicle rental tax and the two percent motor fuels tax to the Department of Accounts Transfer Payments. The Department of Taxation will continue to collect these taxes.
FY 2013 FY 2014 Nongeneral Fund $ (98,000,000) $ (98,000,000)
Remove one-time funding for move expensesRemoves funding provided in FY 2012 for the relocation of the department's tax processing center.
FY 2013 FY 2014 General Fund $ (240,000) $ (240,000)
Reduce security at the agency's processing centerEliminates the second night security staff at the agency's processing center. This security staff provides parking lot security for the department's second shift staff.
FY 2013 FY 2014 General Fund $ (32,000) $ (32,000)
Transfer funds and positions for the administration of the communications sales and use tax to the correct fundTransfers appropriation for revenue from the communications sales and use tax to the correct fund.
Reduce nongeneral fund appropriation to reflect anticipated revenueReduces the agency's special fund appropriation to reflect the most recent revenue estimates.
FY 2013 FY 2014 Nongeneral Fund $ (5,000,000) $ (5,000,000)
Eliminate Nelco for processing electronic individual income tax returnsEliminates the application a taxpayer may currently use to file their return electronically. Nelco is an outside vendor that is currently used for electronically filed returns through joint state and federal tax programs. Taxation will transition to a system developed in-house. This will have no impact on electronic filing by taxpayers.
FY 2013 FY 2014 General Fund $ (200,000) $ (200,000)
Adjust funding to reflect changes in information technology and telecommunication chargesAdjusts the agency's budget for the general fund share of information technology and telecommunication charges based on changes in utilization, services, and rate changes approved by the Joint Legislative Audit and Review Commission on July 1, 2010, and September 1, 2011.
FY 2013 FY 2014 General Fund $ 3,794,598 $ 3,794,598
Realign positionsRealigns positions within the agency to more accurately reflect the current organizational structure.
Mandate corporations file estimated payments and their annual return and payment electronicallyMandates corporations to file estimated payments and their annual return and payment electronically. This change will be effective January 1, 2013. Corporations will be able to pay their estimated taxes electronically on the agency's website for free or using an electronic funds transfer through their financial institution. A corporation may request a hardship waiver.
FY 2013 FY 2014 General Fund $ (45,865) $ (60,865)
Eliminate services and formsEliminates the requirement that the department print and mail various tax forms. The forms will be available on the department's website.
FY 2013 FY 2014 General Fund $ (87,280) $ (87,280)
Fund changes in state employee workers' compensation premiumsAdjusts the agency's budget for the general fund share of state employee workers' compensation premiums based on the allocation of FY 2013 and FY 2014 program costs provided by the Department of Human Resource Management. The allocation is based on the historical experience of the agency and reflects the current policy of providing agencies with 50 percent of any increased costs and allowing agencies to retain 50 percent of any reduced costs.
FY 2013 FY 2014 General Fund $ 886 $ 1,894
Adjust funding to reflect changes in rent charges at the seat of governmentProvides additional funding to cover the general fund share of increased rent charges at the seat of government. The rent rate increase, the first in six years, results from additional costs to maintain facilities.
FY 2013 FY 2014 General Fund $ 395,700 $ 527,600
Transfer funding for the motor fuel tax to the correct fundTransfers revenue collected through the motor fuel tax to the correct fund.
Eliminate Metavante telephone service and instruct taxpayers to use an electronic mediumEliminates the application through which a business taxpayer may pay their tax over the phone. These taxpayers will no longer be able to submit payments over the phone effective July 1, 2012, and instead will have to use the agency's website, which is a free service, or pay by check.
FY 2013 FY 2014 General Fund $ (50,000) $ (50,000)
Consolidate serversConsolidates some of the agency servers.
FY 2013 FY 2014 General Fund $ (185,000) $ (185,000)
Establish general services unitConsolidates two offices to establish a new general services unit which will handle the agency's warehouse operations and manage the agency's facilities.
FY 2013 FY 2014 General Fund $ (142,701) $ (190,772) Authorized Positions $ (3) $ (3)
Reduce the number of income tax refund checksEliminates the taxpayer's option of receiving an individual income tax refund in the form of a paper check, except under special circumstances. Taxpayers will have the option of receiving a refund through direct deposit into a bank account or the receipt of a debit card. It is anticipated that the implementation of this reduction will reduce both check stock and postage and result in a savings for the Department of the Treasury, but will have an expenditure impact to the Department of Taxation due to systems modifications and to address the anticipated increased taxpayer calls to the call center. There will be savings over the long-term.
FY 2013 FY 2014 General Fund $ 200,000 $ 50,000
Move funds to the correct service areaMoves appropriation between service areas to correct an error in the base budget.
Replace high-speed document scanning equipmentProvides funding to purchase the document scanners over a five-year term through the state's Master Equipment Lease Purchase (MELP) program. Annually, the scanners process millions of checks, tax returns, and correspondence, and are a critical component of the department's paper processing operations because they are intricately entwined with multiple business processes and storage applications.
FY 2013 FY 2014 General Fund $ 215,168 $ 162,323