What is R&B?? The Tennessee Department of Revenue PRESENTS. Ribbons and Bows?????? Rhythm and Blues?????? Tennessee Department of Revenue 8/26/05 1
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1 The Tennessee Department of Revenue PRESENTS 8/26/05 1 What is R&B?? Ribbons and Bows?????? Rhythm and Blues?????? 8/26/05 2 1
2 In SSTP It Can Only Mean One Thing!!!! RATES & BOUNDARIES 8/26/05 3 RATES State and Local Tax Rates BOUNDARIES Applicable State and Local Tax Jurisdictions of the delivery point s physical location. 8/26/05 4 2
3 Rates Table Tax Rate for each jurisdiction code FIPS State Code FIPS County Code FIPS Place (Municipality) Number FIPS Place Class Code Special Taxing Districts defined by the individual states (FIPS - Federal Information Processing Standards) 8/26/05 5 Boundary Table All states must provide boundary data at the 9-digit zip code level. States must provide the appropriate 5- digit zip code boundaries to meet requirements of 305(F) of the Agreement A state may choose to expand the database to also include address boundaries 8/26/05 6 3
4 There Are Three Sources Of Information On R&B 1. Streamlined Sales and Use Tax Agreement, Article III, Section Streamlined Sales Tax Project Implementation Guide, Chapter Streamline Sales Tax Project Rates and Boundary Database Instructional Paper 8/26/05 7 Importance of Accuracy To ensure the correct amount of tax is collected and distributed to the correct jurisdiction Once certified, states will not hold CSPs/CASs liable for tax error related to an incorrect Rates and Boundaries table provided by the state (CSP Certified Service Provider) (CAS Certified Automated System) 8/26/05 8 4
5 R&B Database Development In-House Development Contract Vendor Development 8/26/05 9 Tennessee Approach USPS file of all State Addresses Unable to determine if address was outside/inside city/county limits (jurisdictions) USPS file of all State Zip Codes Unable to use as zip codes crossed jurisdictional (city/county) lines Several zip codes cross state boundaries 8/26/
6 Tennessee Approach Phone Numbers Area codes and first three digits of number cross jurisdictional lines Property Assessor records Not feasible as it would require separate files, each in different formats, from over 450 jurisdictions to be consolidated Not all counties have electronic files 8/26/05 11 Tennessee Approach Vendor Development Cost of development In-House Development Used State GIS Division to develop database 8/26/
7 Areas Of Concern Time Frame of Implementation (October 2005/July 2007) Assurance by GIS Division it could meet the deadline Dedication to the project from state agencies other than Revenue Complete assurance from upper management that this would be GIS #1 priority 8/26/05 13 Areas of Concern Experience of new GIS Division Personnel were very qualified and eager to prove the worth of a GIS Division Constant Changes to File Format Attendance at TIGERS/FTA conferences and participating in conference calls Accuracy of GIS information Continual testing 8/26/
8 Problems in Development Only 60% of all counties and cities in Tennessee have been mapped Converting FIPS codes into SITUS codes for the Tennessee Revenue Integrated Tax System (RITS) Mapping layers not layered correctly causing jurisdiction to fall outside their actual boundaries 8/26/05 15 GIS Information Current Mapping Layers Used County and Municipal Boundary Street Centerline Source of Mapping TeleAtlas North America 8/26/
9 Tennessee Currently Internet site is available to determine single tax rate. Jurisdictional database is available from the Tennessee Revenue Web site Test files are being completed to be provided to each CSP to ensure accuracy of tax calculations 8/26/05 17 Recommendations Read the material available Rely on other States/TIGERS/FTA for information Ensure your people have the time to spend on the project Be prepared for change and setbacks Get involved and attend as many conferences (TIGERS/FTA) as possible 8/26/
10 Conclusion Tennessee s s approach in the development of the R&B databases was due to: 1. Financial savings 2. GIS/Revenue personnel commitment 3. Ability to use GIS for other state applications. (verify SITUS codes) 8/26/05 19 Available Web Sites FTA Streamlined Sales Tax Site FIPS Codes Tennessee Revenue Web Site 8/26/
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