NSGIC

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NSGIC
NATIONAL STATES GEOGRAPHIC INFORMATION COUNCIL
2105 Laurel Bush Rd. Bel Air, MD 21015
443-640-1075 www.nsgic.org
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Streamlined Sales Tax
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Streamlined Sales Tax Panelists

• Shelby Johnson, State of Arkansas
• Frank Winters, State of New York
• Land Wood, State of Ohio
• Dennis Pederson, State of Tenneseee

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Streamlined Participation Nationwide

• Radically simplify and modernize sales and use
  tax collection and administration across the US
• Forty-two states and the District of Columbia are
  involved in the Project.
• Forty-five states and the District of Columbia
  impose a sales and use tax.

• Participating States

Source http//www.streamlinedsalestax.org/
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Streamlined Sales Tax Goals

• Uniform definitions within tax laws
• Rate simplification
• State level tax administration of all state and
  local sales and use taxes
• Uniform sourcing rules.

• Simplified exemption administration for use- and
  entity-based exemptions
• Uniform audit procedures
• State funding of the system

Source http//www.streamlinedsalestax.org/
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Uniform Sourcing Rules

• The states will have uniform and simple rules for
  how they will source transactions to state and
  local governments. The uniform rules will be
  destination/delivery based and uniform for
  tangible personal property, digital property, and
  services. Special sourcing rules will be
  developed for unique industries.

Source http//www.streamlinedsalestax.org/
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Uniform Sourcing Rules (cont)

• States are required to develop and maintain a
  boundary database that provides retailers
  information on any delivery location in the
  state.

• Assign all taxing jurisdictions in the state at
  the ZIP4 Code level
• Assign all taxing jurisdictions in the state at
  the ZIP Code level
• States may develop an additional address level
  database that assigns addresses to taxing
  jurisdictions.

Source http//www.streamlinedsalestax.org/
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Uniform Sourcing Rules (cont)

• States are required to develop and maintain a
  rate database that provides retailers information
  on what rate to charge

• Rates must be separated into the lowest level
  components, i.e. state, county, city,
  municipality, etc.

Source http//www.streamlinedsalestax.org/
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New York
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The lay of the land

• Sales tax rates not uniform across the state
• State base rate local rate sales tax rate
• 79 different sales tax jurisdictions
• 57 counties outside NYC
• 22 cities (including NYC)
• New York is one of 23 destination states.
• Point of sale purchases

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Local Jurisdiction Look-up for Sales Tax Problems

• Zip code easy, but very inaccurate
• Old system - paper listings
• Systems must be available to mail order
  companies, car dealers, furniture dealers, etc.
  who face penalties for incorrect tax collection
  if audited

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How we got involved

• State Department of Tax and Finance came to us in
  2002
• Before we had a street address GIS database
• Tell us about this GIS thing
• One year later
• Described tax jurisdiction problem
• How can we update tabular listings of streets?
• Online Application went live in June
• Real GIS data under the hood
• Cascading Geocoding

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Input form
Output Result
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Findings

• Road data is not just for transportation
  applications
• Structure is in place to refine address locations
• Use of address points along the boundaries
• Addressing accuracy relative to boundaries
• Parcel data is the best data source
• Tax department is a willing funding contributor
• Local tax officials are excellent data editors
• Real business need with at stake
• Creates partnerships with local governments

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Streamlined Sales Tax in Ohio
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SSTP Implementation in Ohio

• Partnership between Tax OIT
• Dept of Taxation
• Business need
• Business rules expertise
• OIT
• Spatial resources technology
• Contractor resources for application development
• Project management
• Success was our only option
• Very political
• First IT initiative after formation of OIT

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Ohio Department of Taxations Goals

• Level playing field for Ohio retailers
• more sellers collect sales/use taxes
• everyone will collect the same tax
• Create a more stable revenue source for Ohio
• Estimated 600 - 800 million a year in lost
  revenue
• Standardized rules by which all must play
• Sellers eases compliance
• States level playing field across the states

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What does SST mean for GIS?

• Spatial elevated to an Enterprise enabling
  technology
• Business driver for statewide spatial data
  development efforts
• Opportunities for statewide GIS coordination
• Geocoding/Addressing Standards
• Opportunity to establish Geographic Information
  Technology (GIT) as an operational imperative
• Clearly places GIS in critical path high profile

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Other Opportunities for Ohio Taxation

• Municipal Income Tax
• School District Income Tax
• SD IT compliance
• Generating revenue for SDs
• Outreach meetings with SD officials
• Case study for ROI
• Tax Analysis

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Improving the Accuracy

• Where we started
• Best available, consistent, statewide data
• Commercial software data
• US Census Bureau/TIGER Line Files gap filler
• Enhanced SD Boundaries
• Where were headed
• Location Based Response System (LBRS)
• Master Address File (MAF)
• Statewide Coordinated Cadastral Program
• Other relevant data layers
• Continued integration with GIServOhio

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SST BoundaryDB Geography

• ZIP Code not granular enough
• ZIP4 close, but still not enough granularity
• Address (optional)

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Boundary Database

• .
• .
• .
• 4,20060401,99991231,,,,,,,,,,,,,,,45697,9790,45697
  ,9791,,39,39,001,85876,,,,,,,,,,,,,,,,,,,,,,,,,
• 4,20060401,99991231,,,,,,,,,,,,,,,45697,9792,45697
  ,9795,,39,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• 4,20060401,99991231,,,,,,,,,,,,,,,45697,9797,45697
  ,9799,,39,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• 4,20060401,99991231,,,,,,,,,,,,,,,45697,9997,45697
  ,9997,,39,39,001,85876,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45101,,45101,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45105,,45105,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45144,,45144,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45616,,45616,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45618,,45618,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45650,,45650,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45657,,45657,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45660,,45660,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45671,,45671,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45679,,45679,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45684,,45684,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
• Z,20060401,99991231,,,,,,,,,,,,,,,45693,,45693,,,3
  9,39,001,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

ZIP4
ZIP Code
Address
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Rate Database

• 39,0,1,0.015,0.015,0.015,0.015,20010101,20051231
• 39,0,1,0.01,0.01,0.01,0.01,20060101,20060331
• 39,0,1,0.015,0.015,0.015,0.015,20060401,99991231
• 39,0,3,0.01,0.01,0.01,0.01,19880101,99991231
• 39,0,5,0.0125,0.0125,0.0125,0.0125,19980101,999912
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• 39,0,7,0.01,0.01,0.01,0.01,19880101,99991231
• 39,0,9,0.0125,0.0125,0.0125,0.0125,19940101,999912
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• 39,0,11,0.015,0.015,0.015,0.015,19960601,99991231
• 39,0,13,0.015,0.015,0.015,0.015,19950101,99991231
• 39,0,15,0.0125,0.0125,0.0125,0.0125,19960101,99991
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• 39,0,17,0.005,0.005,0.005,0.005,19950201,20050930
• 39,0,17,0.01,0.01,0.01,0.01,20051001,99991231
• 39,0,19,0.01,0.01,0.01,0.01,19960601,20060531
• 39,0,19,0,0,0,0,20060601,20060630
• 39,0,19,0.01,0.01,0.01,0.01,20060701,99991231
• 39,0,21,0.015,0.015,0.015,0.015,20030701,99991231
• 39,0,23,0.01,0.01,0.01,0.01,19880101,20050331
• 39,0,23,0.015,0.015,0.015,0.015,20050401,20060930
• 39,0,23,0.01,0.01,0.01,0.01,20061001,99991231

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Ohios Implementation

• Web Site Online Interactive
• http//thefinder.tax.ohio.gov/
• small medium business
• Batch available thru Web site
• registered users
• small medium business
• Downloadable Data
• RB Files
• medium to large business - ASP, CSP, POS Vendors
• Web Service
• application to application connectivity
• medium large business
• Integration with Ohio Business Gateway
• Tax file reporting
• Vendor registration licensing
• GIServOhio spatial service delivery platform

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Address
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ZIP Code
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Online Reports
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Phased In Approach

• January 1, 2005 voluntarily participation
• May 1, 2006 taxable delivery sales of 30
  million in calendar year 2005
• May 1, 2007 taxable delivery sales of 5
  million in calendar year 2006
• January 1, 2008 ALL vendors must be compliant

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Streamlined SalesTax A Tennessee perspective
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SSTP A Tennessee Perspective

• GIS Discovery
• Tennessee Base Mapping Program
• Data Development Partnerships
• Production Applications
• Benefits/Accomplishments

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SSTP A Tennessee Perspective

• Department of Revenue
• Researched vendor community
• Discussions with other States
• Washington state DOR leveraged in-house GIS
  service provider

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SSTP A Tennessee Perspective

• TN DOR staff searched for similar service and
  required data components
• Evaluated Real Property Database
• Located GIS Services group
• Tennessee Base Mapping Program (TNBMP)

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SSTP A Tennessee Perspective

• TNBMP data development phase
• Finalized relationship w/ Emergency
  Communications Board (ECB)
• Statewide license for TANA Dynamap
• Revenue leveraged existing TNBMP data and
  relationship with ECB

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SSTP A Tennessee Perspective

• Benefits/Accomplishments Win/Win
• Cost effective solution that meets the Dept. of
  Revenue need for SSTP implementation
• Served as a springboard for Location Based
  Service (LBS) marketing to other State agencies
  (Human Services, Health, TBI, SOS)
• Revenue identified additional GIS related
  business requirements utilizing GIS Services staff

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Upcoming National Meetings

• SSTP State Local Advisory Council Meetings
• Oct. 4-5, 2006 - Columbus, OH
• Tax Information Group for E-commerce Requirements
  Standardization (TIGERS)
• Dec 7-8, 2006 - Scottsdale, AZ