GEORGIA DEPARTMENT OF REVENUE

Doug MacGinnitie, Revenue CommissionerNovember 13, 2014

2

Georgia Department of Revenue

State of GeorgiaFY13 Budget $40.2 Billion

49%

29%

23%

State of GeorgiaFY14 Budget $41.3 Billion

State Funds

Federal Funds

Other Funds

$20.2 Billion$11.8 Billion

$9.3 Billion

3

Georgia Department of Revenue

2008 2009 2010 2011 2012 2013 201410000000000

12000000000

14000000000

16000000000

18000000000

20000000000

$17.6

$15.7

$14.4$15.4

$16.1

$17.0

$17.8

Georgia Tax Revenues

4

Georgia Department of Revenue

Income Tax - Individual $8.97 Billion

Sales & Use Tax - Net$5.2 Billion

Income Tax – Corpo-rate

$944 Million

Motor Vehicle Tag & Tilte$1.1B

State Taxes – FY2014

5

Georgia Department of Revenue

Responsibilities

Statewide Tax Administration 4.5 million taxpayers

Alcohol & Tobacco Industry 18,000+ licensees

Regulation

Motor Vehicle 8.6 million registrations

6

Georgia Department of Revenue

Number of Employees

• Tax 764• Motor Vehicle 136• Alcohol & Tobacco 71• Admin / Policy 77• Information Tech. 107

7

Georgia Department of Revenue

2013 Statistics

IndividualReturns 4,199,449

Refunds 2,922,919

Refund Amount $2.2 Billion

Sales TaxReturns 1,305,481

8

Georgia Department of Revenue

2014 Statistics

IndividualReturns 4,227,898

Refunds 2,999,076

Refund Amount $2.2 Billion

Sales TaxReturns 1,091,262

(Through October 24)

9

Georgia Department of Revenue

Calls Received by YearYear Tax

2010 755,958

2011 787,685

2012 966,132

2013 791,506

2014 886,060 (through Oct.)

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Georgia Department of Revenue

Customer Service

0

10

20

30

40

50

60

Wait Times2010 - 2014

Avg

. S

pee

d A

nsw

ered

(M

inu

tes)

2010 2011 2012 2013 2014

11

Georgia Department of Revenue

Backlogs (through 10/1/14)

1/1/2012 7/1/2012 1/1/2013 7/1/2013 1/1/2014 7/1/2014 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Protests/Appeals

NOL

Amended Returns

Unapplied Payments

Nu

mb

er

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Georgia Department of Revenue

Tax Credit Summary (1/1/13-8/19/14)

Credit Type Received Approved Denied % Denied

Emp. Retraining 943 848 95 10.07%

Job Tax 1,087 1,022 65 5.98%

Manuf. Investment 114 88 26 22.81%

Research Tax 430 403 27 6.28%

Low Veh. Emiss. 3,607 190 3,417 94.73%

Zero Veh. Emiss. 3,988 2,797 1,191 29.86%

Film Tax 1,015 989 26 2.56%

QEE 15,482 11,858 3,624 23.41%

Interactive Prod. 33 13 20 60.61%

Others 3,646 1,765 1,181 51.59%

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Georgia Department of Revenue

Payment Plan Summary

April 2012 October 2014

# Plans Receivable # Plans Receivable

Total 5,502 $37,894,798 24,898 $155,319,106

FY 2012* FY 2014

Number of payments received 80,564 294,995

Total Collections $16,502,499 $64,763,254

*Payment plan extensions began in January 2012, prior plans were only 12 month durations.

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Georgia Department of Revenue

Tax Tribunal Cases Filed & Resolved As of June 30, 2014

0

20

40

60

80

100

120

140

160

180

FILED RESOLVED

15

Georgia Department of Revenue

Tax Tribunal Cases on Cumulative BasisAs of June 30, 2014

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Georgia Department of Revenue

Fraud StatisticsFiscal 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 58,573 $33,600,000

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Georgia Department of Revenue

Calendar Year Number

2006 2

2007 6

2008 7

2009 3

2010 10

2011 16

2012 8

2013 5

2014 26

Prosecution Statistics

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Georgia Department of Revenue

2014 Tax Law Changes

• Alternative Fuel Vehicles

• Disaster Response / Nexus

• Interactive Entertainment Credit

• Offsets for Local Courts

19

Georgia Department of Revenue

2014 Initiatives

• Transfer Pricing Audits

• TAVT Audits

• Reduce Backlogs

• Miscellaneous