Revenue and Transportation Interim Committee July 9, 2015 1 July - PowerPoint PPT Presentation

July 9, 2015 Revenue and Transportation Interim Committee July 9, 2015 1

July 9, 2015 Reappraisal Update 2

July 9, 2015 Overview • 2015 Reappraisal Status • Electronic Property Record Card – Public Website • Additional Residential Sales Data • 2017 Reappraisal Timeline 3

July 9, 2015 2015 Reappraisal Status • Classification and Appraisal Notices • Approximately 28,000 personal property (business equipment) and 46,000 mobile home notices were mailed in May • Approximately 600,000 real property notices are currently being mailed statewide 4

July 9, 2015 Electronic Property Record Card • An electronic property record card is now available at: • http://property.mt.gov • Property records may be accessed by geocode, name, or address • This website will have all property characteristics, owner name, etc. but it will not have any sales data 5

July 9, 2015 Electronic Property Record Card 6

July 9, 2015 Electronic Property Record Card with no sales data 7

July 9, 2015 Informal Review and Appeals • Informal Classification and Appraisal Reviews (Form AB-26) • Filed with the Department • Due within 30 days from the date on the notice • Formal Appeals • Filed with the local County Tax Appeal Board • Due within 30 days from the date on the notice - or - • If filing an AB-26, within 30 days from the Department’s decision 8

July 9, 2015 Additional Residential Sales Property owners can request additional residential sales on Form AB-26 9

July 9, 2015 Residential Sales Information • Additional sales provided in either paper form or a PDF on a USB drive • Information Includes: • Geocode • Sale price • Sale date • Address • Geocodes can be entered online for more information 10

Electronic Property Record Card July 9, 2015 With sales in market area and subject property’s comparable sales 11

July 9, 2015 2017 Reappraisal Timeline 12

July 9, 2015 2015 Tax Season Update 13

Individual Income Tax Returns Processed July 9, 2015 Electronic and Paper Tax Seasons 2010-2015 500,000 450,000 7% 9% 10% 14% 9% 400,000 93% 91% 18% 90% 91% 86% 350,000 82% 300,000 250,000 200,000 150,000 100,000 50,000 0 Apirl 30, 2010 April 30, 2011 April 27, 2012 May 3, 2013 May 2, 2014 May 1, 2015 Paper 74,319 60,710 38,688 44,983 41,606 33,309 Electronic 332,183 370,975 389,802 399,347 410,412 420,566 Total 406,502 431,685 428,490 444,330 452,018 453,875 14

Individual Income Tax Refunds Processed July 9, 2015 Electronic and Paper Tax Seasons 2010-2015 400,000 350,000 9% 8% 13% 9% 18% 7% 91% 18% 92% 300,000 91% 87% 93% 82% 82% 250,000 200,000 150,000 100,000 50,000 - April 30, 2010 April 30, 2011 April 27, 2012 May 3, 2013 May 2, 2014 May 1, 2015 Total 337,999 349,243 325,969 349,041 359,512 352,477 Paper 59,873 46,075 22,040 32,363 33,077 26,980 Electronic 278,126 303,168 303,929 316,678 326,435 325,497 15

Average Days to Process an Individual Income July 9, 2015 Tax Refund Filed Electronically Tax Seasons 2010-2015 9 8 7.9 7 6.9 6 6 5.8 5.5 5 5 4 3 2 1 0 April 30, 2010 April 30, 2011 April 27, 2012 May 3, 2013 May 2, 2014 May 1, 2015 16

July 9, 2015 Income Tax Collections By Fiscal Year 2006-2015 $1,400 Millions $1,200 $1,000 $800 $600 $400 $200 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Fiscal Year * Fiscal Year 2015 Only Includes Collections Through June 17

Corporate License Tax, Partnerships, and Small July 9, 2015 Business Corporation Returns Processed Electronic and Paper Tax Seasons 2010-2015 40,000 15% 22% 35,000 18% 15% 18% 85% 30,000 24% 82% 78% 33% 25,000 18% 18% 33% 20,000 82% 54% 67% 15,000 54% 76% 82% 82% 67% 85% 10,000 46% 46% 5,000 0 April 30, 2010 April 30, 2011 April 27, 2012 May 3, 2013 May 2, 2014 May 1, 2015 Total 17,933 26,728 25,750 36,985 36,405 37,599 Paper 9,696 8,951 4,573 8,025 6,555 5,468 Electronic 8,237 17,777 21,177 28,960 29,850 32,131 18

Business Tax Returns Processed July 9, 2015 Form Type Tax Seasons 2010-2015 40000 45% 40% 35000 46% 15% 18% 30000 24% 25000 45% 44% 18% 33% 42% 20000 38% 36% 43% 15000 54% 34% 35% 76% 82% 82% 67% 85% 10000 21% 5000 18% 36% 18% 17% 46% 21% 21% 0 April 30, 2010 April 30, 2011 April 27, 2012 May 3, 2013 May 2, 2014 May 1, 2015 Totals 17933 26728 25750 36985 36405 37600 CLT-4S 7703 12160 11265 14973 16925 17104 PR-1 3829 8973 9137 15408 13057 14275 CLT-4 6401 5595 5348 6604 6423 6221 19

July 9, 2015 Corporate Tax Collections By Fiscal Year 2003-2014 $200 Millions $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 FISCAL YEAR 20

July 9, 2015 Income Tax Fraud Update 21

July 9, 2015 Refund Frauds Prevented Tax Year 2014 Tax Year 2013 Month # of Frauds Total Fraud Month # of Frauds Total Fraud Received Stopped $ Stopped Received Stopped $ Stopped Prior Years Prior Years 6 $4,004 32 $8,600 Found in 2015 Found in 2014 January 147 $209,207 January 17 $55,852 February 667 $646,524 February 120 $176,646 March 124 $161,985 March 495 $519,954 April 143 $180,029 April 102 $102,029 May 225 $206,872 May 32 $41,844 June 34 $36,465 June 151 $166,155 Total 812 $956,139 Total 1,483 $1,560,027 2013 Total 1,250 $1,482,060 22

July 9, 2015 Refund Frauds Lost Tax Year 2014 Tax Year 2013 Month # of Total Refund Months # of Total Refund Received Refunds Lost $ Lost Received Refunds Lost $ Lost Prior Years Prior Years 3 $3,185 0 $0 Found in 2015 Found in 2014 January 24 $24,537 January 0 $0 February 8 $10,085 February 7 $8,713 March 2 $1,757 March 8 $11,237 April 2 $3,943 April 0 $0.00 May 0 $0 May 0 $0.00 June 0 $0.00 June 1 $901 Total 18 $24,794 Total 37 $39,564 2013 Total 19 $26,130 23

July 9, 2015 Refund Frauds Lost and Later Recovered Tax Year 2014 Tax Year 2013 Month # of Refunds Total Refund $ Months # of Refunds Total Refund $ Received Lost/Recovered Lost/Recovered Received Lost/Recovered Lost/Recovered Prior Years Prior Years 0 $0 0 $0 Found in 2015 Found in 2014 January 8 $9,598 January 0 $0 February 9 $7,482 February 1 $2,519 March 1 $1,139 March 2 $7,224 April 1 $152 April 0 $0 May 2 $17,092 May 0 $0 June 0 $0 June 0 $0 Total 5 $20,902 Total 19 $24,304 2013 Total 5 $20,902 24