Some have noted that they are experiencing delays this year in the receipt of refunds or even in the state cashing their payments. Georgians have the option to file their state tax returns either electronically (over the internet) or using traditional paper forms. When returns are filed electronically, they do not need to be physically opened, nor do they require data entry. For this reason, the time required to process and to issue refunds for returns filed electronically has stayed consistent - and quick - at 6 to 10 days. While the processing of electronic claims has stayed the same, working through this year's paper claims is taking longer.
In prior years, the Department of Revenue would process a paper return in 4 to 10 weeks. However, recent budget cuts have increased the time taken to process paper returns. In the amended FY09 budget, the state had to find around $2 billion in cuts because of the economic downturn and agencies were asked to submit proposals to reduce spending. The Department of Revenue proposed to reduce its budget by $2.4 million by eliminating two shifts of temporary workers that were used to process paper claims.
At the same time that capacity dropped, the number of claims filed has stayed roughly consistent. So, with an equal workload and less capacity, a backlog has developed. The date that a return was filed has a direct effect on when citizens can expect to receive their return. It is a given that everyone is more anxious to receive their refund this year because of the economy.
According to the Revenue Department, here are the turnaround times for paper returns based on the date the Department received them:
Prior to April 1st - 10 to 12 weeks
April 1st to 10th - 12 to 14 weeks
After April 10th - 14 to 20 weeks
MORE INSIGHT ON GEORGIA'S STATE REVENUE
INDIVIDUAL INCOME TAXES - "Incoming is down, Outgoing is Up"
Individual Income Taxes - In the 2009 Fiscal Year, only two months, September and November exceeded the previous years same month, and only by about $30 million each.
The other eight months total a decline of some $884 million in FY09 under FY08.
Individual Income Taxes are 50% of state revenues. Some categories making huge decreases were Estimated Payments - $353 million or 28.6% and individual returns down $177 million or 25.6%.
Conversely, refunds to individuals are up $71 million but only 3.8%. Individual income tax payments to the state are down by $145 million and refunds are up on over 200,000 returns totaling $70 million.
SALES TAXES
Sales tax revenues have declined 8.31% YTD. This is a shade better than the 9.83% that Individual Income Taxes have declined YTD.
The distribution to local governments has declined about the same amount as the overall decline, -7.8% which is somewhat of a surprise, because it shows that local sales tax revenues are declining at approximately the same rate as state sales taxes.
Within categories, home furnishings were up in May by about 9% and manufacturing sales tax collections were up about 10% for May. Automotive sales taxes were down 44% over May of 2008.
Motor Fuel continues to lag, down by 13.7% combined, with the drop in fuel prices decreasing the sales taxes by 19%. Additionally, usage by the gallon continues to decrease excise tax collections some 7.4% YTD.
Corporate Income Taxes are off 26.7%. Refunds are up 54.5%, estimated payments down 20%, S Corp income taxes down 36% but assessments were up 289% or $47 million.
Whether there are green shoots of recovery sprouting or just more weeds due to the rain is debatable.
Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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Tuesday, June 16, 2009
Senate Update: I Haven't Recieved My Refund
Tuesday, February 24, 2009
Sen. Ronnie Chance, Feb. 24th Update
This week, the Georgia General Assembly reached the 20th Legislative Day, which marks the halfway point of the 2009 Legislative Session. The Legislature has been working hard to ease the problems caused by the global economic crisis, and thus far the Senate, House, and Governor are all working together. A good example of this is the Homeowner Tax Relief Grants (HTRG).
Early this session, the Governor proposed the elimination of funding for the HTRG because of budget concerns. The money for these grants was approved last year, and local governments had already factored them into their bills. Had the legislature not acted, many citizens across Georgia would have received an additional property tax bill for several hundred dollars.
However, I am pleased to report that we have successfully saved the grants. The House and Senate, acting quickly, passed legislation that the Governor has already signed to ensure funding for these grants will occur. It was very important to secure these grants in these difficult economic times.
Below are a few updates on bills moving through the legislature:
An Effort to Create Jobs for Georgians
This week, Republican Leadership in the Georgia General Assembly continued work on a package to stimulate the economy through the private sector. The "Jobs, Opportunity, and Business Success Act of 2009" will provide tax incentives to create real, long-term jobs in Georgia.
The bill includes the following:
$500 credit towards the unemployment insurance tax for each eligible employee hired.
$2,400 Income tax credit for each eligible employee hired. This credit will be available to those who hire an employee that has been unemployed for at least 60 days and remains employed for at least 24 months at a rate above the average weekly rate of unemployment benefits as determined by the DOL.
Start a "new business" holiday. This component would create a one year "holiday" on new filings for LLC's, Limited Partnerships and For Profit Companies.
Elimination of the State Inventory Tax on all Georgia businesses.
Elimination of the Sales Tax Deposit.
Gradual elimination of the Corporate Income Tax. This is a gradual elimination of the Corporate Income tax beginning in 2012 and phased over 12 years. Beginning in 2012, the tax rate will be reduced by .5% each year over 12 years. We are avoiding short-term revenue loss to the state while signaling a pro-business, pro-jobs plan for the future.
Senate Votes to Strength Food Safety in Georgia
The Senate passed Senate Bill 80, which imposes stricter guidelines on food testing for processing plants in response to the nationwide salmonella outbreak that was linked to a South Georgia peanut butter plant.
The legislation requires that food processing facilities report suspicions of contaminated food, food testing and retention of testing results to the Department of Agriculture. This bill provides the Department access to any food processor's testing records for the presence of contaminants.
The Commissioner of Agriculture is also directed to establish requirements for regular food testing. Processors are to report positive finds of contaminates within one business day of the discovery directly to the state. The bill also gives the Commissioner the right to test any food if there are reasonable grounds to suspect contamination.
SR 1: The "Taxpayer Protection Amendment"
This measure passed by the Senate would require any additional state revenue collected in future years to be appropriated in the Amended Budget in the following priority: 1. Satisfying the state's student enrollment increases; 2. Funding of the Revenue Shortfall Reserve until the fund reaches 10 percent of the previous year's budget.; 3. Any remaining surplus would be put towards outstanding debt and/or providing taxpayer relief. If passed and signed by the Governor, the resolution would go before voters as a proposed constitutional amendment on the November 2010 ballot before becoming law.
Illegal Aliens in Georgia Prisons
The Senate Veterans, Military and Homeland Security Committee passed SB 136 which decreases the costs and expenses of operating state prisons by deporting many of the illegal aliens in our prison system. SB 136 requires the Department of Corrections and the State Board of Pardons and Paroles to participate in the U.S. Immigration and Customs Enforcement Rapid Removal of Eligible Parolees Accepted for Transfer (REPAT) Program. In an effort to crack down on the increasing population of illegal immigrants living in Georgia, the bill expedites the deportation process of aliens incarcerated or eligible for parole. Aliens who participate in this program would waive any right to appeal their conviction and would be required to serve the remainder of their prison term without parole if they are caught in Georgia illegally again.
Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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Sunday, October 12, 2008
Georgia Right to Life Endorses Senator Ronnie Chance
The Georgia Right to Life Political Action Committee announced its endorsement of Senator Ronnie Chance in his reelection effort.
Georgia Right to Life thanked Senator Chance for his commitment to the protection of the human life.
Georgia Right to Life endorsements are based on responses to candidate surveys, voting history and evaluation of candidates’ and their commitment to the cause of Life. Georgia Right to Life stated to Senator Chance “As a candidate who has demonstrated a willingness to stand for the sanctity of life, we are especially pleased to commend you and look forward to working with you during the next Georgia General Assembly.”
“I am honored to have the support of Georgia Right to Life and its members,” said Senator Chance.
Senator Chance represents the 16th Senate District that includes all or part of Fayette County, Lamar County, Pike County, and Spalding County. Having spent his entire life in Fayette County, Senator Chance understands the traditions and values of the families in the 16th District.
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Senator Chance Honored with Pathfinder Award
The Commission’s executive director Craig Young and Commission Chairman Rusty Kidd presented the award to Senator Chance in Senate chambers on Wednesday.
Rusty Kidd said, “The Commission is proud to present Senator Chance with our Pathfinder Award. Senator Chance has been an outstanding proponent and friend to persons with traumatic brain and spinal cord injuries. His support of the Commission and Georgians with disabilities is to be highly commended.”
The Pathfinder Award was painted by Allen London, an Atlanta artist who suffered a traumatic brain injury in a motor vehicle crash in 1994.
Senator Chance represents the 16th District, which includes all of Pike and Lamar Counties and parts of Fayette, Monroe and Spalding Counties.
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