Bill Summary for Bill Number Presentation by Department of Revenue

Final
Presentation by Department of Revenue

COMMITTEE ON JOINT FINANCE

Votes:

Action Taken:

<none>

09:43 AM -- Call to Order

Representative Vigil called the meeting to order and welcomed everyone to the first Joint House and Senate Finance Committee of the 2005 session.

09:44 AM -- Presentation by the Department of Revenue

Ms. Michael Cooke, Executive Director, and John Vecchiarelli, Senior Director, Taxation, Colorado Department of Revenue, presented information on the department to the committee. A copy of their presentation materials is provided as Attachment A.

Ms. Cooke began by discussing the department's "Organization Chart." She briefly discussed the functions of each division in the Department of Revenue found on the organization chart.

09:50 AM

Ms Cooke continued by discussing the department's key accomplishments for the recent year. The department has worked hard to update and enhance its online systems to give citizens more electronic options for filing taxes and other services. Ms. Cooke briefly discussed the enhancements to the department's Net-File system, which allows citizens to file state income taxes online.

Representative Vigil inquired whether the department's Net-File system has the capability to allow citizens to make direct payments electronically to the department for income taxes owed. Ms. Cooke responded that the Net-File system allows citizens to make electronic fund transfers to either pay taxes or claim tax refunds. Mr. John Vecchiarelli commented that consumers cannot make direct tax payments or use a credit card to pay taxes through the Net-File system, but that the department is trying to move in that direction.

Ms. Cooke continued by discussing Colorado's Lottery Program. The lottery had it second best year for lottery sales with over $401 million in total sales. About $104 million was distributed to Great Outdoors Colorado, state parks, the Conservation Trust Fund and $2.4 million will be distributed to schools. At the same time, the department achieved a number of savings for the lottery program through efficiencies which saved the department about $1 million.

09:55 AM

Ms. Cooke discussed the department's drivers' license operations and commented on the use of facial recognition in the licensing process. The committee briefly discussed the use of facial recognition in the licensing process. Ms. Cooke discussed the length of time it takes to obtain a permanent drivers' licence and discussed the option that consumers have to renew their license through the mail.

The committee briefly discussed the waiting lines in driver's licensing offices. Ms. Cooke commented that during certain days, the licensing offices across the state have long lines with an average wait of 28 minutes. The committee briefly discussed the driver license offices that have been closed due to budgetary reductions in previous years.

Ms. Cooke commented that the department is trying to promote its Electronic Renewal-by-Mail (ERBM) Program that was implemented in 2004. The program is an alternative to using drivers' license offices to renew drivers' licenses. Persons must have a clear driving record and be between the ages of 21 and 60 to participate in the ERBM Program.

10:25 AM

Ms. Cooke briefly discussed the department's efforts to provide better assistance to citizens who need telephone assistance to file their state income taxes. The Taxpayer Service Call Center processed over 1 million calls last year to taxpayers. The call wait-time for citizens to reach the department has significantly been reduced.

Ms. Cooke closed by discussing the department's efforts to continue to improve some of its systems, such as the Colorado State Titling and Registration System (CSTARS) and the online state tax filing systems. The department's efforts to improve the CSTARS system was a product of working with committees to develop new budget policies and procedures to make the program more efficient.

Representative Vigil inquired about the department's Checkoff Program should the number of programs exceed the statutory 12 program requirement. Ms. Cooke responded by saying that should the statutory limit be exceeded, the department would incur a significant cost for programming unless the last summary page for the Checkoff Program was changed and to accommodate additional checkoff programs.

Representative Witwer inquired whether the department could provide information on past TABOR refunds for each year the state had a refund. He requested information on the number of taxpayers who received refunds, the range for refunds, and the average refund paid to taxpayers by income tier.