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Georgia Department of Revenue Overview of the Georgia Department of Revenue Lynne Riley, Revenue Commissioner Slide 2 Atlanta locations I-75 I-85 I-285 I-20 Headquarters Century Center Training & Organization Development Unit NEO 2015 2 Local Government Services, Processing Center, Motor Vehicle Division, South Metro Regional Office, and Warehouse at Southmeadow Slide 3 Athens Atlanta Douglas Savannah Augusta Albany Columbus Rome South Metro Macon 3 Gainesville 11 Regional Offices Slide 4 Georgia Department of Revenue Responsibilities Statewide Tax Administration 4.5 million taxpayers Alcohol & Tobacco Industry 18,000+ licensees Regulation Motor Vehicle8.9 million registrations Slide 5 Georgia Department of Revenue Department of Revenue Strategic Plan Slide 6 Georgia Department of Revenue Slide 7 Comparative Summary of Net Revenue Collections FY '12 FY '13 FY '14 FY '15 FY '16 Appropriated * Tax Revenues: Income Tax - Individual $ 8,142,693 $ 8,753,712 $ 8,966,125 $ 9,677,987 $ 9,884,056 Sales and Use Tax - General: Sales and Use Tax - Gross $ 10,080,239 $ 10,051,131 $ 9,851,533 $ 10,353,350 Local Distribution $ (4,622,932) $ (4,633,195) $ (4,602,785) $ (4,822,300) Adjustments \ Refunds $ (126,960) $ (93,855) $ (78,336) $ (89,638) Net Sales and Use Tax - General $ 5,330,347 $ 5,324,081 $ 5,170,411 $ 5,441,413 $ 5,593,609 Motor Fuel Taxes: Prepaid Motor Fuel Tax $ 573,047 $ 547,172 $ 568,856 $ 564,237 Motor Fuel Excise Tax $ 431,564 $ 428,278 $ 448,021 $ 457,185 Total Motor Fuel Taxes $ 1,004,611 $ 975,450 $ 1,016,876 $ 1,021,422 $ 998,184 Income Tax - Corporate $ 589,915 $ 797,255 $ 944,256 $ 1,000,087 $ 995,534 Tobacco Tax $ 227,123 $ 211,448 $ 216,349 $ 215,055 $ 208,934 Alcoholic Beverages Tax $ 173,635 $ 175,018 $ 178,072 $ 184,374 $ 190,316 Estate Tax $ 28 $ (15,352) $ - Property Tax $ 67,417 $ 53,492 $ 38,857 $ 26,799 $ 7,000 Motor Vehicle - Tags, Titles & Fees $ 308,171 $ 453,351 $ 1,079,628 $ 1,166,107 $ 1,152,601 Total Tax Revenues - Subtotal $ 1,366,289 $ 1,675,212 $ 2,457,162 $ 2,592,422 $ 2,554,385 Other Revenues: Other Fees & Taxes $ 208,597 $ 275,536 $ 272,709 $ 295,281 $ 389,055 Total Taxes and Other Revenues $ 16,052,536 $ 17,003,992 $ 17,883,284 $ 19,028,524 $ 19,419,289 Slide 8 Georgia Department of Revenue Comparative Corporate Income Tax Collections Slide 9 Georgia Department of Revenue Comparative Individual Income Tax Collections Slide 10 Georgia Department of Revenue Sales and Use Tax Revenues by Business Group (Thousands) Slide 11 Georgia Department of Revenue Selected Income Tax Credits Utilized on Tax Returns Employer's Credit for Approved Employee Retraining Employer's Job Tax Credit and Mega Credit Manufacturer's Investment Tax Credit Low Income Housing Credit Research Tax Credit Film Tax CreditLand Conservation Credit Qualified Education Expense Credit 200923,104,423.8344,309,916.158,692,228.0045,142,998.4412,545,034.5245,209,423.004,967,239.1821,979,420.00 201025,896,736.0065,340,238.3822,399,663.0093,055,135.009,764,330.0096,770,773.0015,359,714.7028,063,237.00 201127,988,069.0063,759,330.5758,772,684.0091,249,749.0012,424,231.97137,754,766.2522,226,432.0036,636,261.00 201223,305,267.0059,903,097.8512,927,060.0073,564,465.009,426,193.18225,940,873.0154,675,413.0044,776,463.00 201324,732,272.0070,796,665.368,245,728.0068,090,609.0011,267,612.11222,141,657.2118,727,476.0041,699,277.00 Slide 12 Georgia Department of Revenue Processing Statistics Total Returns 20157,488,690 201020112012201320142015 Total Returns Processed6,644,1997,367,0446,600,0006,200,0006,536,7197,488,690 Average Cost to Process-Paper$1.5 Avergae cost to Process-Electronic$0.5 Percentage of total tax returns filed electronically59%68%78%86%83.08%85.83% Cost Per year for Paper$4,086,182$3,536,181$2,178,000$1,302,000$1,659,019$1,591,721 Cost Per year for Electronic$1,960,038$2,504,795$2,574,000$2,666,000$2,715,353$3,213,771 Total Cost$6,046,220$6,040,976$4,752,000$3,968,000$4,374,372$4,805,492 Slide 13 Georgia Department of Revenue Telephone Calls Received by Year YearTax 2010755,958 2011787,685 2012966,132 2013791,506 2014956,110 Slide 14 Georgia Department of Revenue 14 A staff of professional tax specialists to audit tax accounts and oversee collection actions of: Income Tax Sales Tax Motor Fuel Taxes Alcohol Taxes Compliance Division Slide 15 Georgia Department of Revenue Record Liens in County Courthouses Issue Liens against Motor Vehicles Close Businesses Apply Bank Levies Garnish Wages Seize and Sell Personal Property 15 Enforcement Actions Slide 16 Georgia Department of Revenue 16 Publicize rules and regulations for the Department Research and Analysis of legislation Hold taxpayer conferences Issue policy statements and informational bulletins Issue determinations on exemption-related requests Protest Conferences and Administrative Hearings Legal Affairs and Tax Policy Division Slide 17 Georgia Department of Revenue 17 Administers Income, Sales and Use, and Motor Fuel Tax laws Administers DOR licenses, registrations and maintains entity information Maintains taxpayer accounts receivables and payables information Taxpayer Services Division Slide 18 Georgia Department of Revenue The Georgia Tax Center Secure website that allows taxpayers to file returns and pay taxes electronically. Taxpayers can set up e-mail notifications when action is taken in regards to their tax return. This allows taxpayers to protect themselves against fraud. Allows businesses and individuals to track the status of their returns and refunds. Slide 19 Georgia Department of Revenue https://gtc.dor.ga.gov/_/ Slide 20 Georgia Department of Revenue 20 The Georgia Tax Tribunal is dedicated to the resolution of disputes between taxpayers and the Georgia Department of Revenue. An autonomous division within the Office of State Administrative Hearings. Their mission is to resolve tax disputes in a prompt, impartial, courteous and thoughtful manner. Website: http://gataxtribunal.georgia.gov/http://gataxtribunal.georgia.gov/ Georgia Tax Tribunal Slide 21 Georgia Department of Revenue Alcohol Products Tobacco Products Alcohol and Tobacco Division Licenses & Permits 21 Slide 22 Georgia Department of Revenue 22 Law Enforcement Compliance with Georgia laws and regulations relating to voluntary compliance and enforcement of: - Alcohol beverages-Tobacco products - Motor fuel tax- Motor carriers - Motor vehicle registration - Issuance of citations Also provides assistance to federal, state and local governments and their law enforcement agencies Alcohol and Tobacco Division Slide 23 Georgia Department of Revenue Alcohol and Tobacco Statistics FY2010FY2011FY2012FY2013FY2014 Number of Alcohol Agents2442414032 Alcohol Inspections3,8204,7497,5565,3985,617 Alcohol Investigations1,2801,3361,3501,2191,122 Alcohol Citations2,0611,9797,556962707 Underage Alcohol Investigations 4,289 4,331 5,343 3,816 3,673 Underage Alcohol Citations699753617300254 Liquor License Investigations 1,280 1,336 1,350 1,219 1,122 Still Seizures-72-2 Tobacco Inspections3,1263,9396,1873,9544,454 Tobacco Investigations361573741 Tobacco Citations123138206114329 Underage Tobacco Investigations 3,372 2,284 2,065 1,339 2,688 Executive Orders1,7492,0532,4371,0391,111 Game Inspections1,4134,2713,2012,1913,293 Felony Arrests312926162 Misdemeanor Arrests140228162125130 Dyed Fuel Inspections4,9906,7606,9587,1116,838 Dyed Fuel Violations11216715550113 Slide 24 Georgia Department of Revenue Alcohol Law Enforcement - Yesteryear Slide 25 Georgia Department of Revenue 25 While cases have decreased since the end of prohibition, it still shows up today. It is typically found while cooperating with local or federal law enforcement agencies while investigating other crimes. Alcohol Law Enforcement - Today Slide 26 Georgia Department of Revenue 26 Local Government Services... train, assist and monitor county tax officials to help ensure that the property tax burden is distributed equitably among taxpayers. Georgia Certification Programs for County Tax Assessors and Appraisers Slide 27 Georgia Department of Revenue 27 Unclaimed Property Program Collects from holders any unclaimed property that has been abandoned by its owners, and serves as a custodian of the property until the rightful owners can be found and the property returned Last year DOR distributed over $15 million back to rightful owners DOR website makes it easy Local Government Services Website: https://etax.dor.ga.gov/unclaimedproperty/main.aspxhttps://etax.dor.ga.gov/unclaimedproperty/main.aspx Toll Free:855.329.9863 Slide 28 Georgia Department of Revenue Titles Registrations License Plates Insurance Compliance 28 Motor Vehicle Division Slide 29 Georgia Department of Revenue 29 Business Units Call Center Vehicle Valuation International Registration Plan (IRP) Lobby Unit (Customer Service) Unified Carrier Registration (UCR) & Permitting Motor Vehicle Division Slide 30 Georgia Department of Revenue 30 Dealer Registration Salvage & Title Processing Title Imaging Exam Accounting & Audits Administrative Support Warehouse Management Motor Vehicle Division Slide 31 Georgia Department of Revenue Motor Vehicle Registrations Slide 32 Georgia Department of Revenue Motor Vehicle Active Registrations for Georgia Specialty Plates Slide 33 Georgia Department of Revenue 33 Internal Affairs of the Department All issues involving physical security at facilities Prevention and investigation of crimes/fraud committed against the Department, including: Sales Tax Withholding Tax Income Tax Motor Vehicle Crime Title Fraud Corporate Tax Criminal Investigations Office of Special Investigations Slide 34 Georgia Department of Revenue Fraud Statistics Fiscal YearNumber of Blocked ReturnsAmount Blocked 200632,987$26,900,000 200766,700$42,000,000 200815,884$16,500,000 200928,887$40,000,000 201052,077$41,000,000 2011109,884$71,600,000 2012162,427$117,000,000 2013106,949$53,800,000 201447,314$33,624,000 201565,982$312,895,381* Slide 35 Georgia Department of Revenue Fraud Sweep April 2015 Statewide Operation that targeted fraudulent tax preparers and tax evaders Had been defrauding both State and Federal governments out of hundreds of thousands of dollars, resulting in multiple felony charges Slide 36 Georgia Department of Revenue OSI Fraud Incidents Taxpayer sought a $94 million state refund. OSI flagged her account and worked with her bank to arrest her as she made plans to deposit her refund check. Used car dealers rolled back odometers in order to raise the value of vehicles and ultimately defraud taxpayers. Slide 37 Georgia Department of Revenue December 2014 at Southmeadow Slide 38 Georgia Department of Revenue OSI: Sid Seizure Sid assists in investigations regarding untaxed revenues. Slide 39 Georgia Department of Revenue New Laws Effective July 1, 2015 HB 170 Revises Excise Taxes on Motor Fuels State Hotel-Motel Fee Annual Fee on Alternative Fuel Vehicles Annual Fee on heavy vehicles Eliminates income tax credit on zero emission vehicles Slide 40 Georgia Department of Revenue New Laws Effective July 1, 2015 HB 110 5% Excise tax on fireworks sold in Georgia. HB 147 Initial two year registration period for certain vehicles. SB 100 Tag offices may issue a Temporary Operating Permit when a vehicle fails emission inspection. SB 63 New rules for brewery and distillery tours, provisions for on premise consumption and allowance for samples to be taken off- site. Slide 41 Georgia Department of Revenue New Laws Effective January 1, 2016 HB63 GA Employer GED Tax Credit - $1M cap HB237 Extend Angel Investor Tax Credit through 2018 HB308 Modifies the Historic Rehabilitation Credit HB339 Extends gaming portion of Film Tax Credit HB464 Modifies select Conservation Credits HB457 Watercraft Inventory tax exemption restored Slide 42 Georgia Department of Revenue TAVT Rate for 2016, 2017, and 2018 HB 386 passed by General Assembly in 2012 - required DOR to evaluate 2014 TAVT revenues in calendar year 2015 to determine if a rate adjustment is to be made. 2013 TAVT rate = 6.50% 2014 TAVT rate = 6.75% 2015 TAVT rate = 7.00% DOR calculated the TAVT target collection amount at $556M. DOR calculated the TAVT state current collection amount at $838M. DOR issued policy bulletin on August 17 th TAVT rate will remain at 7.00% through 2018. DOR will evaluate revenues again in calendar year 2018. Slide 43 Georgia Department of Revenue New Rule 560-7-8-.54 O.C.G.A. 48-2-39 Income tax credit cap approval or preapproval periods. Applies to income tax credits issued on a first-come, first-served basis. First day of submission must be a regular business day. Submissions on day the cap is reached will be prorated. Example: SSO credit applications will be accepted starting at 8:00 am on Monday, January 4, 2016. If cap is reached that day, all applications will be prorated. Slide 44 Georgia Department of Revenue House Bill 202 Task Force The task force was established to review current DOR regulations and recommend revisions required to conform to new statutes enacted by HB 202. HB 202 includes significant changes to property valuation and taxation services that are performed by local governments. Task force consisted of DOR personnel, legislators, county officials, and professionals in relevant appraisal and taxation fields. Slide 45 Georgia Department of Revenue Priority Projects Ahead For DOR Enhanced Fraud Prevention Initiatives Fraudulent filers & identity theft national & state efforts Fraud Manager software system acquired Pilot Projects - targeted sales and income tax audits Analysis of ROI for audit staffing and resources DRIVES: GRATIS & Drivers Licensing Systems Modernization Multi year project in partnership with Dept. of Driver Services Systems interface with county tag offices Slide 46 Georgia Department of Revenue Lynne Riley, Commissioner 1800 Century Boulevard, Suite 15300 Atlanta, GA 30345 Lynne.Riley@dor.ga.gov 404-417-2100 Lynne.Riley@dor.ga.gov http://dor.georgia.gov