2023 Special Session I

Budget Bill - HB6001 (Enrolled)

Department of Taxation

Item 273

Item 273

First Year - FY2023Second Year - FY2024
Planning, Budgeting, and Evaluation Services (71500)$4,117,772$4,117,772
Tax Policy Research and Analysis (71507)FY2023 $2,042,991FY2024 $2,042,991
Appeals and Rulings (71508)FY2023 $1,286,819FY2024 $1,286,819
Revenue Forecasting (71509)FY2023 $787,962FY2024 $787,962
Fund Sources:  
GeneralFY2023 $4,117,772FY2024 $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.