1. Overview of the Georgia
Georgia Department of Revenue
Overview of the Georgia
Department of Revenue
Lynne Riley, Revenue Commissioner
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2. Atlanta locations Headquarters Century Center I-285
New Employee Orientation
New Employee Orientation
July 21, 2008
Atlanta locations
I-285
Local Government Services,
Processing Center, Motor
Vehicle Division, South Metro
Regional Office, and
Warehouse at Southmeadow
I-75
Headquarters
Century Center
I-85
I-20
I-20
I-85
Training & Organization Development Unit NEO 2015 2
Georgia Department of Revenue - Slide Show
GSU Site Visit Georgia Department of Revenue 2 2 2

3. 11 Regional Offices Rome Gainesville Athens South Metro Atlanta
New Employee Orientation
New Employee Orientation
July 21, 2008
11 Regional Offices
Rome
Gainesville
Athens
South Metro
Atlanta
Macon
Augusta
Columbus
Savannah
Albany
Douglas 3
Georgia Department of Revenue
GSU Site Visit Georgia Department of Revenue 3 3

4. Responsibilities Alcohol & Tobacco Industry 18,000+ licensees
Statewide Tax Administration 4.5 million taxpayers
Alcohol & Tobacco Industry 18,000+ licensees
Regulation
Motor Vehicle million registrations
4+ mm individual returns processed annually
250,000 businesses file returns (sales, withholding, corporate, etc.) filed and processed annually
Big data processor
20 billion
16 billion – State
4 billion – Local Governments
Miscellaneous

5. Department of Revenue Strategic Plan
Fair & Efficient Tax Administration
For Public Confidence & Compliance
Taxpayer
Services
Safety & Security
Workforce Investment
Organizational & Operational Efficiency & Effectiveness
Modern Technology

6. State Funds
$ ,325,217,673
Federal Funds
$ ,751,846,068
Other Funds
$ ,188,331,684

7. Comparative Summary of Net Revenue Collections
FY '12
FY '13
FY '14
FY '15
FY '16 Appropriated *
Tax Revenues:
Income Tax - Individual
$ ,142,693
$ ,753,712
$ ,966,125
$ ,677,987
$ ,884,056
Sales and Use Tax - General:
Sales and Use Tax - Gross
$ ,080,239
$ ,051,131
$ ,851,533
$ ,353,350
Local Distribution
$ (4,622,932)
$ (4,633,195)
$ (4,602,785)
$ (4,822,300)
Adjustments \ Refunds
$ (126,960)
$ (93,855)
$ (78,336)
$ (89,638)
Net Sales and Use Tax - General
$ ,330,347
$ ,324,081
$ ,170,411
$ ,441,413
$ ,593,609
Motor Fuel Taxes:
Prepaid Motor Fuel Tax
$ ,047
$ ,172
$ ,856
$ ,237
Motor Fuel Excise Tax
$ ,564
$ ,278
$ ,021
$ ,185
Total Motor Fuel Taxes
$ ,004,611
$ ,450
$ ,016,876
$ ,021,422
$ ,184
Income Tax - Corporate
$ ,915
$ ,255
$ ,256
$ ,000,087
$ ,534
Tobacco Tax
$ ,123
$ ,448
$ ,349
$ ,055
$ ,934
Alcoholic Beverages Tax
$ ,635
$ ,018
$ ,072
$ ,374
$ ,316
Estate Tax $
$ (15,352) $
Property Tax
$ ,417
$ ,492
$ ,857
$ ,799
$ ,000
Motor Vehicle - Tags, Titles & Fees
$ ,171
$ ,351
$ ,079,628
$ ,166,107
$ ,152,601
Total Tax Revenues - Subtotal
$ ,366,289
$ ,675,212
$ ,457,162
$ ,592,422
$ ,554,385
Other Revenues:
Other Fees & Taxes
$ ,597
$ ,536
$ ,709
$ ,281
$ ,055
Total Taxes and Other Revenues
$ ,052,536
$ ,003,992
$ ,883,284
$ ,028,524
$ ,419,289

8. Comparative Corporate Income Tax Collections

9. Comparative Individual Income Tax Collections

10. Sales and Use Tax Revenues by Business Group (Thousands)

11. Selected Income Tax Credits Utilized on Tax Returns
Employer's Credit for Approved Employee Retraining
Employer's Job Tax Credit and Mega Credit
Manufacturer's Investment Tax Credit
Low Income Housing Credit
Research Tax Credit
Film Tax Credit
Land Conservation Credit
Qualified Education Expense Credit
2009
23,104,423.83
44,309,916.15
8,692,228.00
45,142,998.44
12,545,034.52
45,209,423.00
4,967,239.18
21,979,420.00
2010
25,896,736.00
65,340,238.38
22,399,663.00
93,055,135.00
9,764,330.00
96,770,773.00
15,359,714.70
28,063,237.00
2011
27,988,069.00
63,759,330.57
58,772,684.00
91,249,749.00
12,424,231.97
137,754,766.25
22,226,432.00
36,636,261.00
2012
23,305,267.00
59,903,097.85
12,927,060.00
73,564,465.00
9,426,193.18
225,940,873.01
54,675,413.00
44,776,463.00
2013
24,732,272.00
70,796,665.36
8,245,728.00
68,090,609.00
11,267,612.11
222,141,657.21
18,727,476.00
41,699,277.00

12. Processing Statistics
2010
2011
2012
2013
2014
2015
Total Returns Processed
6,644,199
7,367,044
6,600,000
6,200,000
6,536,719
7,488,690
Average Cost to Process-Paper
$1.5
Avergae cost to Process-Electronic
$0.5
Percentage of total tax returns filed electronically
59%
68%
78%
86%
83.08%
85.83%
Cost Per year for Paper
$4,086,182
$3,536,181
$2,178,000
$1,302,000
$1,659,019
$1,591,721
Cost Per year for Electronic
$1,960,038
$2,504,795
$2,574,000
$2,666,000
$2,715,353
$3,213,771
Total Cost
$6,046,220
$6,040,976
$4,752,000
$3,968,000
$4,374,372
$4,805,492
Total Returns 2015
7,488,690

13. Telephone Calls Received by Year
Tax
2010
755,958
2011
787,685
2012
966,132
2013
791,506
2014
956,110

14. New Employee Orientation
Compliance Division
A staff of professional tax specialists to audit tax accounts and oversee collection actions of:
Income Tax
Sales Tax
Motor Fuel Taxes
Alcohol Taxes
The compddv
Alcohol
-Percentage sales at brew pubs (making sure at least 50% food)
-confirming wholesalers are remitting proper amount of taxes 14 14
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15. Enforcement Actions Record Liens in County Courthouses
New Employee Orientation
New Employee Orientation
July 21, 2008
Enforcement Actions
Record Liens in County Courthouses
Issue Liens against Motor Vehicles
Close Businesses
Notes:
Apply Bank Levies
Garnish Wages
Seize and Sell Personal Property 15 15
Georgia Department of Revenue - Slide Show
GSU Site Visit Georgia Department of Revenue 15 15 15

16. Legal Affairs and Tax Policy Division
New Employee Orientation
Legal Affairs and Tax Policy Division
Publicize rules and regulations for the Department
Research and Analysis of legislation
Hold taxpayer conferences
Issue policy statements and informational bulletins
Issue determinations on exemption-related requests
Protest Conferences and Administrative Hearings 16
Georgia Department of Revenue - Slide Show 16 16

17. Taxpayer Services Division
New Employee Orientation
Taxpayer Services Division
Administers Income, Sales and Use, and Motor Fuel Tax laws
Administers DOR licenses, registrations and maintains entity information
Maintains taxpayer accounts receivables and payables information
Notes:Taxpayer Services Division administers individual income tax, withholding tax, corporate income tax, sales and use tax, motor fuel tax, and motor carrier fuel tax. 17 17
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18. The Georgia Tax Center
Secure website that allows taxpayers to file returns and pay taxes electronically.
Taxpayers can set up notifications when action is taken in regards to their tax return. This allows taxpayers to protect themselves against fraud.
Allows businesses and individuals to track the status of their returns and refunds.

19. https://gtc.dor.ga.gov/_/

20. Website: http://gataxtribunal.georgia.gov/
New Employee Orientation
Georgia Tax Tribunal
The Georgia Tax Tribunal is dedicated to the resolution of disputes between taxpayers and the Georgia Department of Revenue.
An autonomous division within the Office of State Administrative Hearings.
Their mission is to resolve tax disputes in a prompt, impartial, courteous and thoughtful manner.
Website: 20
Georgia Department of Revenue - Slide Show 20 20

21. Alcohol and Tobacco Division
New Employee Orientation
New Employee Orientation
July 21, 2008
Alcohol and Tobacco Division
Licenses & Permits
Alcohol Products
The Alcohol and Tobacco Division ensures that the State of Georgia collects all taxes and fees which are owed by individuals and businesses and which are subject to Georgia’s alcoholic beverage and tobacco laws and regulations. It provides assistance to taxpayers, license and permits applicants, and others in the areas of alcohol, tobacco and coin – operated amusement machines.
Tobacco Products 21 21
GSU Site Visit Georgia Department of Revenue
Georgia Department of Revenue 21 21

22. Alcohol and Tobacco Division
New Employee Orientation
Alcohol and Tobacco Division
Law Enforcement
Compliance with Georgia laws and regulations relating to voluntary compliance and enforcement of:
- Alcohol beverages -Tobacco products
- Motor fuel tax - Motor carriers
- Motor vehicle registration
- Issuance of citations
Also provides assistance to federal, state and local governments and their law enforcement agencies
All accurate per ATD
Motor Fuel tax division
Motor Fuel Investigation Unit formed in 2006
Handle all motor fuel tax and motor vehicle registration monitoring
6 sworn officers
Test fuel in vehicles to confirm the taxes have been paid
DOR is the only state agency to monitor motor fuel tax
Has seen a steady increase in voluntary compliance since inception
Ranks in the top 3 in the nation despite being one of the smallest. 22
Georgia Department of Revenue - Slide Show 22 22

23. Alcohol and Tobacco Statistics
FY2010
FY2011
FY2012
FY2013
FY2014
Number of Alcohol Agents 24 42 41 40 32
Alcohol Inspections
3,820
4,749
7,556
5,398
5,617
Alcohol Investigations
1,280
1,336
1,350
1,219
1,122
Alcohol Citations
2,061
1,979
962
707
Underage Alcohol
Investigations
4,289
4,331
5,343
3,816
3,673
Underage Alcohol Citations
699
753
617
300
254
Liquor License
Still Seizures - 7 2
Tobacco Inspections
3,126
3,939
6,187
3,954
4,454
Tobacco Investigations 36 15 37
Tobacco Citations
123
138
206
114
329
Underage Tobacco
3,372
2,284
2,065
1,339
2,688
Executive Orders
1,749
2,053
2,437
1,039
1,111
Game Inspections
1,413
4,271
3,201
2,191
3,293
Felony Arrests 31 29 26 16
Misdemeanor Arrests
140
228
162
125
130
Dyed Fuel Inspections
4,990
6,760
6,958
7,111
6,838
Dyed Fuel Violations
112
167
155 50
113

24. Alcohol Law Enforcement - Yesteryear

25. Alcohol Law Enforcement - Today
New Employee Orientation
Alcohol Law Enforcement - Today
While cases have decreased since the end of prohibition, it still shows up today. It is typically found while cooperating with local or federal law enforcement agencies while investigating other crimes.
Top and Bottom left-2012 moonshine bust in Lawrenceville 40 gallons
Bottom Center-2014 bust in Valdosta 21 gallons of moonshine found.
Bottom Right Cedartown ATF arrest had 55 gallons of moonshine, 1.5 lbs of cocaine, 1 lb of meth, .5 lb of marijuana 25
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26. Local Government Services
New Employee Orientation
Local Government Services
Georgia Certification Programs for County Tax Assessors and Appraisers
. . . train, assist and monitor county tax officials to help ensure that the property tax burden is distributed equitably among taxpayers.
Notes: 26 26
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27. Local Government Services
New Employee Orientation
Local Government Services
Unclaimed Property Program
Collects from holders any unclaimed property that has been abandoned by its owners, and serves as a custodian of the property until the rightful owners can be found and the property returned
Last year DOR distributed over $15 million back to rightful owners
DOR website makes it easy
Website:
Toll Free: 27
Georgia Department of Revenue - Slide Show 27 27

28. Motor Vehicle Division
New Employee Orientation
New Employee Orientation
July 21, 2008
Motor Vehicle Division
Titles
Registrations
License Plates
Insurance Compliance
Notes: 28 28
Georgia Department of Revenue - Slide Show
GSU Site Visit Georgia Department of Revenue 28 28 28

29. Motor Vehicle Division
New Employee Orientation
Motor Vehicle Division
Business Units
Call Center
Vehicle Valuation
International Registration Plan (IRP)
Lobby Unit (Customer Service)
Unified Carrier Registration (UCR) & Permitting 29
Georgia Department of Revenue - Slide Show 29 29

30. Motor Vehicle Division
New Employee Orientation
Motor Vehicle Division
Dealer Registration
Salvage & Title Processing
Title Imaging Exam
Accounting & Audits
Administrative Support
Warehouse Management 30
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31. Motor Vehicle Registrations

32. Motor Vehicle – Active Registrations for Georgia Specialty Plates

33. Office of Special Investigations
New Employee Orientation
Office of Special Investigations
Internal Affairs of the Department
All issues involving physical security at facilities
Prevention and investigation of crimes/fraud committed against the Department, including:
Sales Tax
Withholding Tax
Income Tax
Motor Vehicle Crime – Title Fraud
Corporate Tax
Criminal Investigations 33
Georgia Department of Revenue - Slide Show 33 33

34. Number of Blocked Returns
Fraud Statistics
Fiscal Year
Number of Blocked Returns
Amount Blocked
2006
32,987
$26,900,000
2007
66,700
$42,000,000
2008
15,884
$16,500,000
2009
28,887
$40,000,000
2010
52,077
$41,000,000
2011
109,884
$71,600,000
2012
162,427
$117,000,000
2013
106,949
$53,800,000
2014
47,314
$33,624,000
2015
65,982
$312,895,381*

35. Fraud Sweep – April 2015
Statewide Operation that targeted fraudulent tax preparers and tax evaders
Had been defrauding both State and Federal governments out of hundreds of thousands of dollars, resulting in multiple felony charges

36. OSI Fraud Incidents
Taxpayer sought a $94 million state refund. OSI flagged her account and worked with her bank to arrest her as she made plans to deposit her refund check.
Used car dealers rolled back odometers in order to raise the value of vehicles and ultimately defraud taxpayers.

37. December 2014 at Southmeadow

38. OSI: Sid Seizure
Sid assists in investigations regarding untaxed revenues.

39. New Laws Effective July 1, 2015
HB 170
Revises Excise Taxes on Motor Fuels
State Hotel-Motel Fee
Annual Fee on Alternative Fuel Vehicles
Annual Fee on heavy vehicles
Eliminates income tax credit on zero emission vehicles

40. New Laws Effective July 1, 2015
HB 110
5% Excise tax on fireworks sold in Georgia.
HB 147
Initial two year registration period for certain vehicles.
SB 100
Tag offices may issue a Temporary Operating Permit when a vehicle fails emission inspection.
SB 63
New rules for brewery and distillery tours, provisions for on premise consumption and allowance for samples to be taken off-site.

41. New Laws Effective January 1, 2016
HB63 – GA Employer GED Tax Credit - $1M cap
HB237 – Extend Angel Investor Tax Credit through 2018
HB308 – Modifies the Historic Rehabilitation Credit
HB339 – Extends gaming portion of Film Tax Credit
HB464 – Modifies select Conservation Credits
HB457 – Watercraft Inventory tax exemption restored

42. TAVT Rate for 2016, 2017, and 2018
HB 386 passed by General Assembly in required DOR to evaluate 2014 TAVT revenues in calendar year 2015 to determine if a rate adjustment is to be made.
2013 TAVT rate = 6.50%
2014 TAVT rate = 6.75%
2015 TAVT rate = 7.00%
DOR calculated the TAVT target collection amount at $556M.
DOR calculated the TAVT state current collection amount at $838M.
DOR issued policy bulletin on August 17th – TAVT rate will remain at 7.00% through 2018.
DOR will evaluate revenues again in calendar year 2018.

43. New Rule
O.C.G.A
Income tax credit cap approval or preapproval periods.
Applies to income tax credits issued on a first-come, first-served basis.
First day of submission must be a regular business day.
Submissions on day the cap is reached will be prorated.
Example: SSO credit applications will be accepted starting at 8:00 am on Monday, January 4, If cap is reached that day, all applications will be prorated.

44. House Bill 202 Task Force
The task force was established to review current DOR regulations and recommend revisions required to conform to new statutes enacted by HB 202.
HB 202 includes significant changes to property valuation and taxation services that are performed by local governments.
Task force consisted of DOR personnel, legislators, county officials, and professionals in relevant appraisal and taxation fields.

45. Priority Projects Ahead For DOR
Enhanced Fraud Prevention Initiatives
Fraudulent filers & identity theft – national & state efforts
Fraud Manager software system acquired
Pilot Projects - targeted sales and income tax audits
Analysis of ROI for audit staffing and resources
DRIVES: GRATIS & Drivers Licensing Systems Modernization
Multi year project in partnership with Dept. of Driver Services
Systems interface with county tag offices

46. Lynne Riley, Commissioner 1800 Century Boulevard, Suite Atlanta, GA