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Mission Statement 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

Authorized Position Summary

	General Fund	Nongeneral Fund	Total Positions
2009 Appropriation	959.50	37.00	996.50
2010 Appropriation	959.50	37.00	996.50
2011 Appropriation	955.50	37.00	992.50
2012 Appropriation	955.50	37.00	992.50
2013 Base Budget	955.50	37.00	992.50
2013 Addenda	(64.50)	0.00	(64.50)
2013 Total	891.00	37.00	928.00
2014 Base Budget	955.50	37.00	992.50
2014 Addenda	(64.50)	0.00	(64.50)
2014 Total	891.00	37.00	928.00

• Recover costs for Land Preservation Tax Credit administration
  Recovers 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 function
  Eliminates 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 supervision
  Eliminates 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 tax
  Establishes 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 exemptions
  Removes the annual study requirement.

  		FY 2013		FY 2014
  General Fund		$ 0		$ (37,000)

• Reduce position level
  Reduces 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 budgets
  Adjusts 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 returns
  Mandates 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 expenditures
  Increases 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 appropriation
  Increases 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 Payments
  Transfers 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 expenses
  Removes 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 center
  Eliminates 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 fund
  Transfers appropriation for revenue from the communications sales and use tax to the correct fund.

• Reduce nongeneral fund appropriation to reflect anticipated revenue
  Reduces 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 returns
  Eliminates 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 charges
  Adjusts 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 positions
  Realigns positions within the agency to more accurately reflect the current organizational structure.

• Mandate corporations file estimated payments and their annual return and payment electronically
  Mandates 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 forms
  Eliminates 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 premiums
  Adjusts 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 government
  Provides 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 fund
  Transfers revenue collected through the motor fuel tax to the correct fund.

• Eliminate Metavante telephone service and instruct taxpayers to use an electronic medium
  Eliminates 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 servers
  Consolidates some of the agency servers.

  		FY 2013		FY 2014
  General Fund		$ (185,000)		$ (185,000)

• Establish general services unit
  Consolidates 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 checks
  Eliminates 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 area
  Moves appropriation between service areas to correct an error in the base budget.

• Replace high-speed document scanning equipment
  Provides 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