Presentation on theme: "How to Use OTC Reports & Resources"— Presentation transcript:
1 How to Use OTC Reports & Resources 2013 OML ConferencePresented By:Dana Ratcliffe, City of Weatherford - City TreasurerBreck Buchanan, MBA, City of Tulsa - Treasury AnalystDavis Puryear, City of Oklahoma City - Assistant City Treasurer
2 Presentation Overview Oklahoma Taxpayer Access Point (OKTAP)What is OKTAPAccess & NavigationReportsHow to use the informationTulsaWeatherford
3 What is OKTAP Central Access Point For Sales & use tax collection detailsPermit and taxpayer researchTax paymentsBusiness Registration
4 OKTAP Access & Navigation Access and Getting StartedRegister with the Oklahoma Tax CommissionContact Dave Francis, OTC – (405)Navigationhttps://oktap.tax.ok.gov/OkTAP/Web/_/#1How to log-inAccessing each months returnRunning reports
5 Reports Account Details – Total sales & use tax collections by COPO Collection Details – Summary of revenues collected for your municipality by taxpayerCollection By NAICS Code – Summary of collections by industryTax, Penalty, and Interest – Total collections and penalty/interest breakdown by taxpayerBalance Due – Balances owed from an audit assessment and/or a filed return with no paymentList of Delinquent Taxpayers – Taxpayers who failed to file a report for a two consecutive monthsNew Sales Tax Permits – All new permits issued during the monthCanceled Sales Tax Permits – Permits canceled during the monthAudit Details – A summary of audits that were assessed for the period
6 Tulsa: Data Analysis Data Analysis Overview How We Use The Data Sales Tax Permit ListSales and Use Tax Collections AnalysisDelinquent Listing / Balance Due ListingMonthly Reports
7 Data Analysis Process Field Inspections Reports Audit Leads Business OTC Tax DataCOT Treasury Data RepositoryAudit LeadsData AnalysisOur data analysis process begins with the receipt of data from OTC; we then import this data into our data repository, which is currently ACL Analytics. For your city or town, Excel may be the only tool you need. From here we analyze the data, create reports, and facilitate other functions such as business license approvals.BusinessLicense ApprovalsEnforce Municipal Codes
8 Data Analysis ProcessObtain DataConfidential Report Data – “Old Data”OkTAP Data - “New Data”Compile DataCombine Old and New DataCan use ACL Analytics, Access, or ExcelReportsCreateVisualize the data in a meaningful wayExcel is a great tool for thisTake ActionMake decisions and take corrective actionsHere is an overview of the analysis process. It’s important to review collections up to 36 months from your most recent report. Pre-OkTAP or “old” data is in text format and can be pulled from the OTC’s old confidential reports site.
9 Sales Tax Permit Analysis Check permits for proper COPO registrationOkTAP:Retailer Permit Search / Sales Tax Permit LookupPull lists of permits by:Name, Street, City, State, ZIP or COPOOnly displays up to 250 results per searchCheck streets/addresses that border your cityOne problem we watch out for is vendors within our city registered with an incorrect COPO (City / County Code). This is a problem because a vendor may be located in your municipality, making sales, and due to incorrect registration, unknowingly remit sales tax collections to the wrong COPO. In other words, their collections simply get paid to the wrong City. Several tools are available to verify that permits are registered properly. Two tools I’ll briefly discuss are the OkTAP sales tax permit lookup system and batchgeo.com. The OkTAP tool is helpful in that you can pull up registered permits in your COPO, and other COPOs, based on name, zip, address. For example, you may have new construction or new vendors occurring near your city limits, are they registered properly?
10 Example of where to access the OkTAP search tool within OkTAP.
11 Example of OkTAP search tool with results displayed.
12 Sales Tax Permit Analysis Check permits for proper COPO registrationbatchgeo.com:Free tool to map up to 250 addresses at onceA great free tool for mapping addresses is batchgeo.com. Up to 250 addresses can be mapped at a time to see where businesses are located.
13 Example of batchgeo. com results Example of batchgeo.com results. The circles with numbers indicate how many addresses are located in that general area. Zooming in closer towards any of the circles will reveal more precise address markers.
14 Sales Tax Permit Analysis Can double check correct COPO / tax rate with OTC Sales / Use tax rate locator:Sample Address: Tulsa City Hall, 175 E 2nd St, ZIP: 74103Another way to double check if an address is within city limits or not, as well as what tax rate should be collected by a vendor is by using the OTC Sales / Use tax rate locator. Tulsa City Hall was used as an example, with each step of the process illustrated. As can be seen, a business making sales at City Hall’s address, would charge a total rate of 8.517%.
15 Sales Tax Permit Analysis Compare registered permits against other data sources:City of Tulsa Utilities Data (commercial customers)Building Permit ApplicationsSpecial Events PermitsDun and Bradstreet Business DirectoriesComparing the list of registered permits to other data sources may pinpoint other registration errors, and could also lead to discovering unregistered sellers.
16 Delinquent and Balance Due Lists Combine together:Delinquent Taxpayer ListBalances Due: Filtered for vendors that are:OpenNot in collectionsNot on a payout planCheck the list when vendors apply for new or renewed business licensesListing is updated monthlyBefore issuing business licenses, the delinquent list and balance due list are checked to ensure licenses are not issued to delinquent sellers.
17 Collections Analysis Top-Down Approach Start: High Level Economic SummaryWhat is happening on a macro level that may explain collections trends?Fed Beige BookKansas City FedState Treasurer: Oklahoma Economic ReportNews Reports: CNBC, Wall Street Journal, Yahoo! FinanceWe take a top-down approach to sales tax analysis which helps us explain trends that may be affecting our local vendors now, or in the future.
18 Collections Analysis Regional Sales Tax Collections Summary Compare this month’s change in collections to:Other MSA CitiesOther Cities in the StateNext, we compare our collections to other cities and towns in the MSA (Census Bureau Metropolitan Statistical Area) and also to other selected cities in the state. This may help us understand if trends in our sales tax were isolated to us or widespread. (include a report example on next slide)
19 Example of MSA report, sales tax normalized to 1%.
20 Collections Analysis Industry Analysis What industries had significant changes?Is the change widespread, or isolated to one or a few vendors?We then drill down a little further and take a look at the changes that have occurred in the major industries. Again asking if the overall changes in sales and use tax collections are isolated to a few industries or widespread. (Include examples of reports on subsequent slides)
21 Example of sales tax collections by SIC Division Example of sales tax collections by SIC Division. We currently convert the new OkTAP NAICS codes back to SIC codes designation and to make historical comparisons a bit easier. We also scrub the industry codes for any major errors we catch – i.e. a large exemption refund that is received without an industry code assigned. We may transition to NAICS codes once we have more than a year worth of data from OkTAP.
22 Example of TOP 25 SIC report Example of TOP 25 SIC report. The majority of our collections are in the top 25, while the majority of any month’s change can usually be explained in the top 10 SICs.
23 Collections Analysis Vendor Analysis Did any vendors have unusual changes?Reporting Period Totals: Zero balance, unusually large, unusually small, or negative periodsUnusual prior period adjustmentsCan the change be easily explained?WeatherRefundsCompany Press ReleasesWord of MouthNews ReportsCompany SEC FilingsOverview of vendor analysis.
24 Vendor Analysis Tool: Tax Dashboard Summarize collections data into Excel spreadsheet:Combine Old (pre OkTAP) and New OkTAP Data with ExcelSummarize by tax filing periodUse conditional formatting to highlight periods with unusual totalsXX% or more below average (yellow)XX% or more above average (green)Negative (pink)Zero (red)Sparklines (“Trends” below) give a quick glance of totalsNotice the low point?Scrolling further to the right reveals this to be the 3/2012 tax filing periodThis will be sent to the OTC for reviewSlide is animated. Example of a tool we use to look for collections / apportionment errors. Also, time permitting, quick demo of an excel spreadsheet that automates merging old and new data together.
25 Final Step Sales and Use Tax Issues Compile a list of identified issuesIssues list sent monthly for review to Oklahoma Tax Commission Taxpayer AssistancePrimary Contact: Dave Francis
26 Weatherford Revenue Review Monthly ReviewTop 10 TaxpayersConfirm new businesses are remittingReview credits and refundsOur process doesn’t require dedicate staff