NEW YORK CITY DEPARTMENT OF FINANCE

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NEW YORK CITY DEPARTMENT OF FINANCE

• and
• COMMISSIONER MARTHA E. STARK
• Present
• The 13th Annual Tax Representatives
• And Practitioners Program

TAXRAPP 2006 Wednesday, October 25, 2006
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TaxRAPP 2006 Chair

• ROCHELLE PATRICOF
• First Deputy Commissioner
• NYC Department of Finance

• WELCOME
• INTRODUCTION TO FINANCES TRANSFORMATION AGENDA

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WELCOME INTRODUCTIONS

• Commissioner Martha E. Stark
• Leadership Team Members
• Dara Jaffee, Assistant Commissioner, Legal
  Affairs
• Michael Hyman, Assistant Commissioner, Tax
  Policy
• Pauline Hyles, Assistant Commissioner, Audit
• Leslie Zimmerman, Assistant Commissioner,
  Payment Operations

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FINANCES MISSION

• To Help People Pay The Right Amount On Time

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TRANSFORMING FINANCE

• The SMART Performance Management System focuses
  on improving results across five key areas
• Compliance
• Complier Treatment
• Customer Satisfaction
• Unit Cost
• Employee Engagement

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FINANCE VALUES

• Fairness
• Transparency
• Efficiency
• Data-driven decision-making

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RESULTSTreating Compliers Fairly

• CLARIFYING OUR RULES
• Bright-light test to determine who is a partner
• Unincorporated Business Tax and General
  Corporation Tax conformity
• Pre-production activity

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RESULTSTreating Compliers Fairly

• ISSUED FINANCE MEMORANDA IN RESPONSE TO YOUR
  QUESTIONS
• Clarified Citys Hotel Tax treatment of reward
  points programs
• Clarified Citys Utility Tax treatment of
  Internet access services

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RESULTSTreating Compliers Fairly

• CREATED NEW AUDIT PROGRAMS TO INCREASE VOLUNTARY
  COMPLIANCE
• Posted Audit Alerts on website to highlight
  common errors made on tax returns and provide
  guidance on how to file correctly the first time
• In response to your requests, established a new
  group to encourage cash businesses to pay their
  fair share

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RESULTSTreating Compliers Fairly

• Created a central point of contact for all firms
• Introduced a bill of rights that describes
  Finances obligations to taxpayers under audit

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RESULTS IMPROVING SERVICE EFFICIENCY

• SOUGHT LEGISLATION REQUIRING
• Public disclosure of co-op sales price
• Uniform property tax exemption deadline
• Mandatory e-filing of Real Property Income and
  Expense (RPIE) forms
• Double weighting of General Corporation Tax and
  Unincorporated Business Tax receipts factors
• Utility and Hotel Tax reforms