Senate Bill No. 450
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced February 5, 2003; referred to the Committee on
Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article ten-c, relating to
creation and development of an automated tax administration
system and funding thereof; setting forth legislative finding;
specifying short title and purpose; authorizing benefits-
funded automated tax administration system purchasing program;
authorizing benefits' funding of the automated tax
administration system and payment of costs and compensation on
the basis of a percentage of the increase in the amount of
taxes, interest and penalties collected which is attributable
to implementation of the automated tax administration system,
as may be described in detail by contract or on a fixed fee
contract basis, such fees to be paid from the increase in the
amount of taxes, interest and penalties collected which is attributable to implementation of the automated tax
administration system, as may be described in detail by
contract; requiring the tax commissioner to make an annual
determination of increased revenue attributable to
implementation of the automated tax administration system;
specifying deposit of moneys and treatment of local and
municipal moneys; creating automated tax administration system
development fund; specifying uses of moneys in the automated
tax administration system development fund and operation of
automated tax administration system development fund;
specifying an annual report; and specifying other contracts
and purchases are not prohibited or hindered by the article.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article ten-c, to read as follows:
ARTICLE 10C. BENEFITS FUNDED PURCHASING.
§11-10C-1. Legislative finding, short title and purpose.
The Legislature hereby finds that creation, development,
acquisition and maintenance of an automated tax administration
system by the tax division of the department of tax and revenue are
crucial to efficient operation of state government and in the best
interests of the people of West Virginia; that the accuracy,
efficiency and cost effectiveness of an automated tax administration system will benefit the people of West Virginia
through cost savings, more efficient tax administration and more
uniform and effective application of the tax laws of the state.
This article shall be known as the "Benefits Funded Purchasing
Act," and is hereby established by the Legislature for the purpose
of creating, developing and maintaining an automated tax
administration system by the tax division of the department of tax
and revenue.
§11-10C-2. Authorization of benefits funded automated tax
administration system purchasing program.
The tax commissioner is hereby authorized to enter into
contracts to finance and acquire an automated tax administration
system and associated computer hardware and software, for use in
the registration of taxpayers, processing of remittances and
returns, and collection of delinquent taxes and any interest and
penalties thereon and for general tax administration. The tax
commissioner is further authorized to acquire the technical
services and related services necessary to develop, implement and
maintain such systems.
§11-10C-3. Benefits funding.
Notwithstanding any provision of chapter five-a, article three
of this code to the contrary, or any other provision of this code
to the contrary, payment of costs and compensation for the
automated tax administration system, related hardware, software and services may be computed and paid: (1) On the basis of a
percentage of the increase in the amount of taxes, interest and
penalties collected which is attributable to implementation of the
automated tax administration system, as may be described in detail
by contract; or (2) on a fixed fee contract basis, such fees to be
paid from the increase in the amount of taxes, interest and
penalties collected which is attributable to implementation of the
automated tax administration system, as may be described in detail
by contract.
§11-10C-4. Annual determination of increased revenue attributable
to automated tax administration system, deposit of
monies, creation and operation of automated tax
administration system development fund; annual
report.
(a) Revenue increment, fund created, operation of fund. -- The
tax commissioner shall determine annually the total amount of
increased revenue attributable to the successful implementation of
the automated tax administration system under this article, and
such amount shall be paid into the state treasury, and deposited to
the credit of a special fund known as the "Automated Tax
Administration System Development Fund," which fund is hereby
created as a revolving fund. The tax commissioner is authorized to
use monies deposited in the automated tax administration system
development fund to pay vendors of hardware, software or services, pursuant to the terms of contracts created in accordance with this
article. All moneys in excess of that required to be paid to the
vendors, as determined by the tax commissioner, shall be
transferred to the general fund: Provided, That seven hundred
fifty thousand dollars shall be retained in the fund each year for
use by the tax commissioner for maintenance and upgrades of tax
division information systems and for general tax aadministration.
Any appropriations made to the automated tax administration system
development fund shall not be deemed to have expired at the end of
any fiscal period.
(b) Treatment of local moneys. --
(1) The amount of the local moneys derived from any tax
imposed under this code which is directed or dedicated to local or
municipal subdivisions shall not be deposited in the automated tax
administration system development fund, but shall be paid
undiminished, including any increase resulting from implementation
of the automated tax administration system, to the local or
municipal subdivision to which it is directed or dedicated by law.
Local or municipal moneys shall be deposited, as directed by law,
in those funds designated for orderly distribution of revenues to
local or municipal subdivisions.
(2) For purposes of this section, the total amount of
increased revenue attributable to the successful implementation of
an automated tax administration system for purposes of determining the amount to be deposited in the automated tax administration
system development fund and the amount of any benefits funded
payments to vendors under this article shall be determined after
subtraction of any tax revenues payable to a local or municipal
subdivision under this code.
(c) Reports. -- During each regular session of the
Legislature, the tax commissioner shall submit a report to the
governor, the speaker of the West Virginia house of delegates and
the president of the West Virginia senate. This report shall
include detailed information on the costs and benefits of
implementing the automated tax administration system pursuant to
this article during the fiscal year immediately preceding the
submission of the report. The report required hereunder shall be
made annually until two complete fiscal years have elapsed
following full implementation of the automated tax administration
system by the tax commissioner.
(d) Other contracts and purchases not prohibited or hindered.
-- This article shall not be construed to prohibit or hinder the
tax commissioner from acquiring any goods or services for any tax
division function or program not specifically included in any
contract entered into pursuant to this article.
NOTE: The purpose of this bill is to authorize the Tax
Commissioner to enter into a program for the creation, development
and operation of an automated tax administration system through a
funding mechanism which allows vendors of the system to be paid out
of the increase in tax revenues that results from implementation of
the system. The bill provides for determination by the Tax
Commissioner of the amount of the increase in tax revenues that
results from implementation of the system, and establishes a fund
for deposits of that increase, net of any local or municipal
dedicated moneys, and provides for a disbursement of the money per
the terms of the system development contract or contracts. The
remainder of the money is paid into the General Fund, except for
$750,000, which is allocated to the Tax Department for maintenance
and operation of the system and general tax administration. The
Tax Commissioner is required by the bill to make an annual report
to the Governor, the Speaker of the House and the President of the
Senate each year for 2 years after implementation of the system,
describing in detail the costs and benefits of implementing the
system.
The article is new; therefore, strike-throughs and
underscoring have been omitted.