Online Sales and Use Tax Calculation, and Address Verification

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Online Sales and Use Tax Calculation, and Address
Verification
Online Sales and Use Tax Calculation, and Address
Verification
Company Introduction, System Application and
Product Demonstration Presented by
TaxWatch Tuesday, January 15, 2013 Presentation
given by Mike Cormaci.
www.watchsystems.com
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Partial List of WatchMap Suite Government
Customers
MISSISSIPPI Harrison County Sheriffs
Office NEVADA Nye County Sheriffs
Office OHIO Allen County Sheriffs Office Geauga
County Sheriffs Office TEXAS Lamar County
ALABAMA Tuscaloosa County Sheriffs
Office Jefferson County Sheriffs
Office LOUISISANA La. Dept. of Public Safety La.
Commission on Law Enforcement La. Dept. of
Probation and Paroles Calcasieu Parish Sheriffs
Office Covington Police Department Acadia Parish
Sheriffs Office Jeff Davis Parish Sheriffs
Office Lafourche Parish Sheriffs Office St.
Tammany Parish St. Tammany Parish Sheriffs
Office St. Charles Parish Sheriffs Office
Watch Systems is a leader in Geographic
Information Systems for State and County
Governments
www.watchsystems.com
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Management Team

• Lou Luzynski, Managing Partner
• Former President and Chief Executive Officer and
  co-founder of Fuelman
• Lead Fuelman from a startup to a company with
  over 300 employees and 100 million in annual
  sales
• Previously Senior Manager at KPMG Peat Marwick
  responsible for audit, tax, and management
  consulting services to early-stage,
  privately-held emerging growth companies.
• B.S.B.A. degree with Cum Laude honors from St.
  Louis University. Certified Public Accountant.
• Mike Cormaci, Sales and Marketing Partner
• Extensive knowledge of business practices of
  state and local government.
• Formerly a leading sales manager at Fuelman
• Previously with Dunn Bradstreet managing major
  accounts such as Proctor Gamble, NCR, Standard
  Register, Bank One, National Insurance, and
  Humana Health Care.
• Bachelors degree in Economics and Marketing from
  Kansas State University.

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• OffenderWatch
• Sex Offender Registration, Verification, and
  Notification (SORN)
• CrimeWatch Alert
• Community notification via targeted email
• ComStatWatch
• Tracking and mapping of criminal activity and
  police resources
• LEMISplus
• NIBRS compliant records management system (RMS),
  Jail Management System (JMS) and Computer aided
  Dispatch (CAD)

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Why choose Watch Systems?
We understand Streamlined requirements and how
they affect TaxWatch technology

• We are offering a proven solution
• We are delivering more than what is required by
  the Agreement
• We employ advanced GIS technology to ensure the
  most accurate results
• Our solution is easy to use, requires no user
  training, and is simple to maintain without IT
  resources
• Our internet technology makes our solutions
  securely accessible from any desktop, mass
  communication features, work with the local
  jurisdictions, changes are tracked, recorded and
  enforceable
• We have three years experience in destination
  based tax solutions in other states
• We build to be cost effective

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Streamlined Sales Use Tax
Requirements driving the TaxWatch solution

• Section 304 Notice for State Tax Changes
• Section 305 Local Rate and boundary Changes
• Section 306 Relief from Certain Liability
• Section 307 Database Requirements and Exceptions
• Section 308 State and Local Tax Rates
• Section 310 General Sourcing Rules
• Section 329 Effective Date for Rate Changes
• Section 401 Seller Participation

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 304
• Lessen the difficulty to Sellers
• Provide advanced notice to sellers
• Limit effective dates to 1st day of quarter
• Communicate legislative changes
• Failure of Seller to receive or State to notify
  obligates seller to collect

• TaxWatch
• Sellers register with state
• Changes in Rates or boundaries trigger email
  notices,
• Watch works with all local authorities on
  quarterly rates and boundaries
• Local changes communicated via email and web
  postings
• Directors available web, database hooks, batch
  processing, books.

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 305
• Local Rate and Boundary
• Enforce effective dates 1st day of quarter
• Apply changes to catalog
• Apply changes after 60 notice to sellers
• Database of changes for all jurisdictions
• Database of all rates for jurisdictions to FIPS
• Assign Five and Nine digit zip codes to each
  jurisdiction
• Address based system to MTSA (4 U.S.C. Sec. 119)

• TaxWatch
• TaxWatch maintains database
• System rules defined by database
• Automated or manual methods of notice
• Database records all rate and boundary changes
• All addresses are normalized to MTSA then
  assigned Zip plus 4

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 306
• Relief from Certain Liability
• State providing address based solution is not
  required to offer liability relief from errors
• (Section 305 sub (F)

• TaxWatch
• Accuracy Rates
• TaxWatch works with locals on data dictionary
• Test have 95 geo-code success rates
• Methodologies allow for higher rates of success

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 307
• Database requirements and Exceptions
• Electronic database shall be in downloadable
  format
• Subsection (F, G) to 305 do not apply when
  product accepted at Point of Sale
• Database not a requirement prior to state
  entering the agreement

• TaxWatch
• TaxWatch Database
• Defined on rules and requirements of SSUT
• batch processing of seller files
• Local changes communicated via email, web
  postings, CD or Printed directories
• Individual address lookup feature, GPS.

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 308
• State and Local Tax Rates
• No multiple tax rates for PP after 12/05 Limit
  effective dates to 1st day of quarter
• No more than 1 local sales or use tax rate per
  jurisdiction
• Provisions of this section do not apply to some
  utility categories

• TaxWatch
• TaxWatch Database functions
• Establish by the state and locals
• Watch works with all local authorities on
  quarterly rates and boundaries
• Local changes communicated via email and web
  postings
• Rate and Boundary tables reflect a Code and
  single rate to an address

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 310
• General Sourcing Rules
• Retail sale
• Taxed at PoS
• Known
• Source of Recipient
• Provided
• Known
• Lease or Rental
• Primary Property Location

• TaxWatch
• Address or location point lookup
• Unique address or GPS referencing
• Seller address files can be batch processed and
  integrated into CSP database
• Rate or boundary changes can be communicated to
  sellers
• Consistent enforcement

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 329
• Effective Date for Rate Changes
• Rate increase applicable after 1st billing period
  starting on or after effective dates
• Rate decrease affective after effective date

• TaxWatch
• Rate change enforcement and recording
• Rate changes are communicated to affected sellers
• Date and transaction recording are made for
  each unique look-up

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Streamlined Sales Use Tax
Section briefs and how TaxWatch addresses the
requirement

• Section 401
• Seller Participation
• Provide an Online registration system
• Registration with states obligates the seller to
  collect and remit sales and use tax
• Sellers may have to provide more information to
  individual states

• TaxWatch
• Sellers register with TaxWatch / State web site
• Registration site provided by state or TaxWatch
• If TaxWatch state establishes rules for seller
  information
• States not participating with SSUT can use
  TaxWatch hosting services

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Value Added for Merchants
Services for Retailers

• Batch processing to validate the addresses and
  update the tax rates of a Retailers tax address
  file
• Transaction Processing for a fee through direct
  integration to retail sales software packages
• CDs, web-posting, Books for manual lookup

TaxWatch for Louisiana Dept. of Motor Vehicles
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What you dont see.
The Advanced GIS Technology

• Underlying GIS technology ensures high accuracy
• Counties, Street maps, Tax Boundaries, Tax Rates,
  are easily maintained as separate layers

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What you dont see.
Low risk, low maintenance

• Hosting by Watch Systems means little impact on
  IT resources
• Watch Systems maintains streets and addresses and
  makes changes to jurisdictions to reduces demand
  on Tax Administrators
• Open interfaces provide ability to integrate with
  other state systems

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What to look for in the demo.
Simple and Effective Online Interface

• Search by
• Address
• Zip
• Zip4
• Forgiving address lookup
• Also ability to enter GPS coordinates, wellheads
• Retailers can enter the value of an item sold

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What to look for in the demo.
Quick and Accurate results

• Returns Normalized Postal Address
• Returns FIPS and Zip4
• Displays Tax Rate Codes
• Tax Rates
• Calculates Taxes Due

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