Program A: Tax Collection
Program Authorization: Title 49, Chapter 1 of the La. Revised Statutes
PROGRAM DESCRIPTION
The mission of the Tax Collection Program in the Office of Revenue is to administer efficiently the state’s tax and regulatory statutes in a manner that will generate the highest degree of public confidence in the department's integrity and fairness. The need for fair and equitable administration of the state's tax laws is essential. Uniform enforcement encourages taxpayers to pay their fair share and prevents an undue burden from being placed on the honest taxpayer. In addition, the presence of an effective and visible enforcement program results in a higher level of voluntary compliance.
The goals of the Tax Collection Program in the Office of Revenue are:
- Promote greater voluntary compliance with tax laws..
- Improve the quality and in the Office of Revenue responsiveness of tax-related research and information produced by the department.
The Tax Collection Program includes the following major activities:
Return and remittance processing. This activity comprises the various means by which the Department receives tax returns and payments, deposits payments and records the information contained in the returns. The Department is increasingly automating this activity using technologies such as electronic filing, document imaging, optical character recognition and electronic funds transfer in an effort to improve accuracy and efficiency.
Delinquency collections. This activity consists of enforcement efforts designed to encourage and compel delinquent taxpayers to pay any taxes owed to the state. The measures employed by the Department include billing notices, warrants for distraint, levies and liens, thereby promoting greater voluntary compliance.
Audits. This activity consists of both desk audits and more in-depth field audits of typically corporate taxpayers. The primary purposes of the audits are to identify potential underpayment of taxes by major taxpayers and to provide a deterrent to all taxpayers against future underpayment, thereby promoting greater voluntary compliance.
Public education and outreach. This activity comprises the Department’s efforts to promote greater awareness and understanding of the tax laws, and to provide better quality customer service. Among other things, the Department provides tax seminars, policy opinions, and printed and computer-searchable publications to taxpayers.
Management and finance. This activity consists of the various administrative and support services functions required to maintain the Department’s operations, including fiscal services, human resources, facility maintenance, purchasing, internal audit and information services.
OBJECTIVES AND PERFORMANCE INDICATORS
Unless otherwise indicated, all objectives are to be accomplished during or by the end of FY 1999-2000. Performance indicators are made up of two parts: name and value. The indicator name describes what is being measured. The indicator value is the numeric value or level achieved within a given measurement period. For budgeting purposes, performance indicator values are shown for the prior fiscal year, the current fiscal year, and alternative funding scenarios (continuation budget level and Executive Budget recommendation level) for the ensuing fiscal year (the fiscal year of the budget document).
RESOURCE ALLOCATION FOR THE PROGRAM
SOURCE OF FUNDING
The sources of funding for this program include State General Fund direct, Self-generated Revenues, Statutory Dedications and Federal Funds. The Office of Revenue's Self-generated Revenues are derived from collection services for the New Orleans Exhibition Hall, other collection fees, late payment audit fees, and audit fees. The Statutory Dedication is the Refund Offset Fund. (Per R.S. 39:32B.(8), see table below for a listing of expenditures out of each Statutory Dedicated fund.) The Federal Funds are used to enforce the Federal Motor Carriers Act and the International Fuel Tax Agreement.
ANALYSIS OF RECOMMENDATION
|
GENERAL FUND |
TOTAL |
T.O. |
|
DESCRIPTION |
|
|
|
|
|
|
|
$36,616,491 |
$67,444,555 |
910 |
|
ACT 19 FISCAL YEAR 1998-1999 |
|
|
|
|
|
|
|
|
|
|
|
BA-7 TRANSACTIONS: |
|
$0 |
$0 |
0 |
|
None |
|
|
|
|
|
|
|
$36,616,491 |
$67,444,555 |
910 |
|
EXISTING OPERATING BUDGET - November 20, 1998 |
|
|
|
|
|
|
|
$0 |
$617,753 |
0 |
|
Annualization of FY 1998 - 1999 Classified State Employees Merit Increases |
|
$0 |
$559,274 |
0 |
|
Classified State Employees Merit Increases for FY 1999 - 2000 |
|
$0 |
$377,676 |
0 |
|
Risk Management Adjustment |
|
$0 |
$1,762,782 |
0 |
|
Acquisitions and Major Repairs |
|
$0 |
($5,265,384) |
0 |
|
Nonrecurring Acquisitions and Major Repairs |
|
$790 |
$790 |
0 |
|
Legislative Auditor Fees |
|
$3,979 |
$3,979 |
0 |
|
Rent in State-owned Buildings |
|
$26,067 |
$26,067 |
0 |
|
Maintenance of State-owned Buildings |
|
$3,048 |
$3,048 |
0 |
|
UPS Fees |
|
$0 |
$2,009,406 |
0 |
|
Salary Base Adjustment |
|
$0 |
($1,600,652) |
0 |
|
Attrition Adjustment |
|
$0 |
($32,131) |
(1) |
|
Personnel Reductions |
|
$0 |
($1,627,587) |
0 |
|
Salary Funding from Other Line Items |
|
$13,649 |
$13,649 |
0 |
|
Civil Service Fees |
|
$0 |
($3,603,051) |
0 |
|
Other Nonrecurring Adjustments - Tax Remittance System |
|
$0 |
$30,713 |
0 |
|
Other Adjustments - Automatic Reallocations within various job training series |
|
$0 |
$565,379 |
0 |
|
Other Adjustments – Increase in maintenance costs for existing computer hardware and software. This includes maintenance costs for equipment going off warranty |
|
$0 |
$261,788 |
0 |
|
Other Adjustments – Increase for building leases |
|
$0 |
$66,787 |
2 |
|
Technical Adjustment – Transfers two (2) positions from the Alcohol and Tobacco Program to reflect funding in the appropriate program |
|
($1,597,486) |
$0 |
0 |
|
Means of Financing Substitution - Replace State General Fund with Fees and Self-generated Revenues to reflect historical collections |
|
|
|
|
|
|
|
$35,066,538 |
$61,614,841 |
911 |
|
TOTAL RECOMMENDED |
|
|
|
|
|
|
|
($1,549,953) |
($5,829,714) |
1 |
|
DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET) |
The total means of financing for this program is recommended at 91.4% of the existing operating budget. It represents 89.0% of the total request ($69,253,336) for this program. The decrease in the total recommended level is primarily due to the nonrecurring of acquisitions and the Tax Remittance System.
PROFESSIONAL SERVICES
|
$131,650 |
|
Other Professional Services for maintenance modifications to tax programs and software support |
|
$40,000 |
|
Other Professional Services for tax advice, research and counsel regarding income tax on trusts and estates, fiduciary income tax and limited other liability companies |
|
$11,376 |
|
Other Professional Services for reporting of information technology to include statistical analysis of revenue streams and taxpayer behavior, develop forecasting and statistical control procedures, determine economic applications of the new Office of Revenue data base, assist and train in microcomputer applications |
|
$40,000 |
|
Other Professional Services to assist the Year 2000 Project Manager in coordination of the project |
|
$10,000 |
|
Other Professional Services for quantitative and fiscal analysis of financial models submitted by taxpayer corporations and other quantitative and administrative consultation |
|
$56,736 |
|
Other Professional Services for tax advice and counsel regarding cases of litigation, etc. |
|
$74,545 |
|
Other Professional Services for media preparation and placement for major initiatives such as but not limited to informing the public on new ways to file tax returns, check the status of refunds; and unclaimed property program |
|
$61,984 |
|
Other Professional Services for expert testimony and witness fees |
|
$43,335 |
|
Other Professional Services for computer related and tax specific services |
|
$153,392 |
|
Other Professional Services for legal assistance on personnel matters, e.g. appeals, Equal Employment Opportunity Commission complaints, harassments, and Human Resource and organizational development |
|
|
|
|
|
$623,018 |
|
TOTAL PROFESSIONAL SERVICES |
OTHER CHARGES
|
$4,571,120 |
|
On-going system re-engineering and technology modernization |
|
$128,015 |
|
Legislative Auditor expenses |
|
|
|
|
|
$4,699,135 |
|
TOTAL OTHER CHARGES |
|
|
|
|
|
|
|
Interagency Transfers: |
|
$95,738 |
|
Payments to the Department of Civil Service |
|
$32,411 |
|
Payments for Uniform Payroll System expenses |
|
$145,453 |
|
Maintenance of State-owned Buildings |
|
$98,031 |
|
Rent in State-owned Buildings |
|
$4,511 |
|
Division of Administration-Office of Information Services computer line usage |
|
$900 |
|
Division of Administration-Louisiana Public Finance Authority-LPFA interest |
|
$336,954 |
|
State Treasurer-banking fees |
|
$9,178 |
|
Comprehensive Public Training Program-personnel training services |
|
|
|
|
|
$723,176 |
|
TOTAL INTERAGENCY TRANSFERS |
ACQUISITIONS AND MAJOR REPAIR
|
$1,762,782 |
|
Funding for replacement of inoperable or obsolete equipment. This equipment includes laser printers, scanners, computers, office furniture, image workstations, fax machines and microfilm reader/printers and mail processing machine. Also included is the expansion to the Automatic Tape Library and Storage to allow for increased storage capacity of computer tapes. |
|
|
|
|
|
$1,762,782 |
|
TOTAL ACQUISITIONS AND MAJOR REPAIRS |
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