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1998 Special Session I

Budget Bill - HB4001 (Introduced)

Department of Taxation

Item 293

Item 293

First Year - FY1999Second Year - FY2000
Revenue Administration Services (73200)$39,202,684$38,828,024
Administrative Processing (73201)FY1999 $5,520,177FY2000 $5,288,224
Revenue Law and Fee Compliance (73203)FY1999 $33,682,507FY2000 $33,539,800
Fund Sources: 
GeneralFY1999 $36,347,078FY2000 $36,019,553
SpecialFY1999 $2,750,717FY2000 $2,702,963
Trust and AgencyFY1999 $94,889FY2000 $95,508
Dedicated Special RevenueFY1999 $10,000FY2000 $10,000

Authority: Title 3.1 Chapters 25.3 and 27, and Title 58.1, Code of Virginia.


A. The Department is hereby authorized to recover from the Transportation Trust Fund the necessary start-up costs associated with the implementation of a local income tax. The Department shall not incur such costs unless a locality(ies) takes action to put the local income tax option on a referendum. The Transportation Trust Fund shall be reimbursed for these costs from the local income tax revenues.


B. Pursuant to Chapters 391 and 362 of the 1996 Acts of Assembly, 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, from which the private collection agencies shall be paid. 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.


C. 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 this tax as provided by § 58.1-1724, Code of Virginia.


D.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, Code of Virginia, Chapter 18.


E. Out of the amounts appropriated for Administrative Processing, the Department is hereby authorized to make payments to contracted imaging/scanning system vendors from operational savings generated from such system. Such payments are estimated at $1.5 million annually.


F. An initial project plan review and periodic progress reviews will be conducted by an independent contractor on the Public/Private Partnership Project authorized by § 58.1-202.1, Code of Virginia. Included in the amount for Revenue Law and Compliance is $300,000 the first year from the general fund for the completion of the initial project plan review. The periodic progress reviews will be conducted at a schedule determined by the Tax Commissioner and funded from proceeds deposited into the Technology Partnership Fund. The general fund will be reimbursed $300,000 from available balances in the Fund.