262#1s (TAX) Tax Collections by Treasurers. SB30 - Member Request

State Budget

2010 Session

Budget Amendments - SB30 (Member Request)

By Member » Item 262 #1s

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Chief Patron: Houck
Tax Collections by Treasurers (language only)

Item 262 #1s

Item 262 #1s
Finance
Taxation, Department of

Language
Page 166, line 1, following A., insert "1."
Page 166, following line 9, insert:
"2. Upon the request of a city or county treasurer or a city or county finance director exercising the duties of a treasurer as defined in § 58.1-3123, Code of Virginia, the Department of Taxation shall enter into an agreement with such treasurer or finance director, pursuant to the authority provided the Department in § 58.1-1803 A, by and through which such treasurer or finance director is authorized to collect delinquent accounts owed to the Commonwealth by taxpayers who may be found within, or who may receive income or possess or control tangible or intangible property or other assets within the jurisdiction of such treasurer or finance director. Upon the execution of such an agreement, the Department shall commence referring accounts for collection to such treasurer or finance director and shall maintain records relating to collections received by the Commonwealth as a result of such collection efforts."

Explanation
(This amendment is self-explanatory.)

Item 262

Item 262	First Year - FY2011	Second Year - FY2012
Revenue Administration Services (73200)	$127,589,513	$128,494,513
Tax Return Processing (73214)	FY2011 $10,757,664	FY2012 $10,662,664
Customer Services (73217)	FY2011 $10,664,643	FY2012 $10,664,643
Compliance Audit (73218)	FY2011 $80,351,434	FY2012 $81,351,434
Compliance Collections (73219)	FY2011 $25,815,772	FY2012 $25,815,772
Fund Sources:
General	FY2011 $49,486,109	FY2012 $49,391,109
Special	FY2011 $16,437,985	FY2012 $16,437,985
Trust and Agency	FY2011 $652,457	FY2012 $652,457
Dedicated Special Revenue	FY2011 $61,012,962	FY2012 $62,012,962

Authority: Title 3.2; Title 58.1, Code of Virginia.

A. Pursuant to § 58.1-1803, Code of Virginia, the Tax Commissioner is hereby authorized to contract with private collection agencies for the collection of delinquent accounts. The State Comptroller is hereby authorized to deposit collections from such agencies into the Contract Collector Fund (§ 58.1-1803, Code of Virginia). Revenue in the Contract Collector Fund may be used to pay private collection agencies/attorneys and perform oversight of their operations, upgrade audit and collection systems and data interfaces, and retain experts to perform analysis of receivables and collection techniques. Any balance in the fund remaining after such payment shall be deposited into the appropriate general, nongeneral, or local fund no later than June 30 of each year.

B. There is hereby appropriated, for each year of the biennium, revenues from the sales tax on fuel in certain transportation districts to cover only the direct cost of administration incurred by the department in collecting these taxes as provided by § 58.1-1724, Code of Virginia.

C.1. The Department of Taxation is authorized to retain, as special revenue, its reasonable share of any court fines and fees to reimburse the department for any ongoing operational collection expenses.

2. Any form of state debt assigned to the Department of Taxation for collection may be collected by the department in the same manner and means as state taxes may be collected pursuant to Title 58.1, Chapter 18, Code of Virginia.

D. The Department of Taxation is authorized to make tax incentive payments to small tobacco product manufacturers who do not participate in the 1998 Tobacco Master Settlement Agreement, pursuant to Chapter 901 of the 2005 Acts of Assembly.

E. The Department of Taxation is hereby appropriated revenues from the Communications Sales and Use Tax Trust Fund to recover the direct cost of administration incurred by the department in implementing and collecting this tax as provided by § 58.1-662, Code of Virginia.

F. The Tax Commissioner shall have the authority to waive penalties and grant extensions of time to file a return or pay a tax, or both, to any class of taxpayers when the Tax Commissioner in his discretion finds that the normal due date has, or would, cause undue hardship to taxpayers who were, or would be, unable to use electronic means to file a return or pay a tax because of a power or systems failure that causes the department's electronic filing or payment systems to be nonfunctional for all or a portion of a day on or about the due date for a return or payment.

G. The Department of Taxation is hereby appropriated Land Conservation Incentive Act fees imposed under § 58.1-513 C. 2., Code of Virginia, on the transferring of the value of the donated interest. The Code of Virginia specifies such fees will be used by the Departments of Taxation and Conservation and Recreation to recover the direct cost of administration incurred in implementing the Virginia Land Conservation Act.

H. In the event that the United States Congress adopts legislation allowing local governments, with the assistance of the Commonwealth, to collect delinquent local taxes using offsets from federal income taxes, the Department of Accounts shall provide a treasury loan to the Department of Taxation to finance the costs of modifying the agency's computer systems to implement this federal debt setoff program. This treasury loan shall be repaid from the proceeds collected from the offsets of federal income taxes collected on behalf of localities by the Department of Taxation.

I. There is hereby appropriated for payment to the Northern Virginia Transportation Commission and the Potomac Rappahannock Transportation Commission a sum sufficient amount of nongeneral fund revenues estimated at $61,000,000 in the first year and $62,000,000 in the second year equal to the revenues collected pursuant to § 58.1-1720 et seq., Code of Virginia, from the additional sales tax on fuel in certain transportation districts under § 58.1-1720 et seq., Code of Virginia. Such funds shall be returned to the respective commissions in amounts equivalent to the shares collected in the respective member jurisdictions.