Item 273 | First Year - FY2023 | Second Year - FY2024 |
|---|---|---|
| Planning, Budgeting, and Evaluation Services (71500) | $4,367,772 | $4,117,772 |
| Tax Policy Research and Analysis (71507) | FY2023 $2,292,991 | FY2024 $2,042,991 |
| Appeals and Rulings (71508) | FY2023 $1,286,819 | FY2024 $1,286,819 |
| Revenue Forecasting (71509) | FY2023 $787,962 | FY2024 $787,962 |
| Fund Sources: | ||
| General | FY2023 $4,367,772 | FY2024 $4,117,772 |
Authority: §§ 2.2-1503, 15.2-2502, 58.1-202, 58.1-207, 58.1-210, 58.1-213, 58.1-816, and 58.1-3406, and Title 10.1, Chapter 14, Code of Virginia.
A. The Department of Taxation shall continue the staffing and responsibility for the revenue forecasting of the Commonwealth Transportation Funds, including the Department of Motor Vehicles Special Fund, as provided in § 2.2-1503, Code of Virginia. The Department of Motor Vehicles shall provide the Department of Taxation with direct access to all data records and systems required to perform this function. The Department of Planning and Budget shall effectuate the transfer of three full-time equivalent positions and sufficient funding to ensure the successful consolidation of this function.
B. Notwithstanding the provisions of § 58.1-202.2, Code of Virginia, no report on public-private partnership contracts shall be required in years following the final report upon the completion of contract or when no such contract is active.
C. The Department of Taxation shall report no later than September 1 on an annual basis, to the Chairmen of the House Appropriations, House Finance and Senate Finance and Appropriation Committees, on the amount of state sales and use tax revenues authorized to be remitted for the preceding fiscal year under the provisions of § 58.1-608.3, § 58.1-3851.1, and § 58.1-3851.2, of the Code of Virginia, as amended by the 2015 General Assembly.
D.1. The Department of Taxation shall conduct an assessment of the agency's Integrated Revenue Management System (IRMS). Specifically, the assessment shall include: an overview of IRMS and the role of each system and application; functionality requested by internal and external stakeholders, a blueprint of current functionality and gap analysis for each functional area; impact of any gaps or limitations on the agency's internal and external stakeholders; current system architecture and platform challenges and impact with the current technology state; impact of security limitations and risks; issues supporting the infrastructure including staff support; and a catalog of existing and future maintenance requirements.
2. Based on the findings from this assessment, the department shall develop guiding principles and potential options for addressing any identified shortcomings in IRMS, including but not limited to, refactoring and replacement. This portion of the assessment will address the department's goals and objectives for going forward with a potential modernization methodology and approach; benefits of modernization to the agency and stakeholders; a roadmap, and the project management and governance required to support any modernization effort.
3. The assessment shall include a cost and benefit analysis between the current and potential future state as well as the status of integrated tax solutions in other states. The department shall report its findings to the Chairs of the House Appropriations Committee and the Senate Finance and Appropriations Committee no later than December 16, 2022.
E. The Department of Taxation shall convene a workgroup to review the findings from the assessment of the Department's Integrated Revenue Management System (IRMS) required by Item 273 Paragraph D of the 2022 Appropriation Act. The workgroup shall develop recommendations for an IRMS modernization project, to include analysis of risks to the state and taxpayers of remaining with the current system, methodologies for refactoring and replacement, benefits to the state and taxpayers of a new model, potential roadmap and timeline, costs and potential funding structures, and the governance structure required for any modernization effort. The workgroup should include in its review the experiences of other state revenue agencies that are in the process of, or have recently completed, revenue management system modernizations. The workgroup shall include the Secretary of Finance or his designee, staff from the House Appropriations and Senate Finance and Appropriations Committees, the Director of the Department of Planning and Budget, and the Chief Information Officer of the Virginia Information Technologies Agency. The workgroup shall submit its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees by November 1, 2023.