Georgia revenue quarterly, Vol. 19, no. 3 (1997)

G~iAoo.P8
R 4-5
1'113

GEORGIA REVENUE QUARTERLY

ZellMiller, Governor

T. Jerry Jackson, Commissioner

DOR TARGETS SALES TO MINORS

ByREG LANSBERRY ATLANTA-If an ounce of prevention is worth a pound ofcure, then the Georgia Department ofRevenue is indeed taking steps to curb the problems associated with underage drinking in Georgia
This past June, DOR Commissioner T. Jerry Jackson authorized the establishment of a Training/Special Projects Coordinator for the Department's Alcohol and Tobacco Division. The position was created with the goal of planning and developing training and education programs designed to combat sales -and subsequent use-of alcoholic beverages to "minors." In Georgia, that means anyone under the age of 21.
The training programs, headed by Sgt. Don Pope who is based in the DOR's Morrow Regional Office, are available at no cost to local law enforcement agencies in all 159 counties in Georgia, and members of the state's retail liquor industry.
"This Department is fully committed to preventing, by means of a proactive training and education program, the problems associated with underage sales, and use, ofalcohoi," Commissioner Jackson said. "In concert with Governor Miller's efforts to toughen the penalties for minors attempting to purchase alcohol, we not only support wholeheartedly his signing of House Bill 250 into law during the 1997 session of the General Assembly, we also stand ready and willing to assist both local law enforcement and liquor retailers to inform and educate all segments of the public."
The crux ofHouse Bill 250, which took effect on July I, is to put more teeth into laws and regulations designed, enacted, and promulgated to curb and combat sales of alcoholic

beverages to underage persons, and their use, by placing the underage offender's driver's license in jeopardy for purchasing, or attempting to purchase, alcoholic beverages. "This is a very high priority matter in our industry and one that needs to be addressed," said Fred Kitchens, Executive Director of the Wine and Spirits Wholesalers of Georgia. "Our industry is committed to insuring that minors don't have access to alcohol through licensed businesses."
"I am also a supporter of the Department's efforts in this regard," said Rep. Harry Dixon. "It is important and can only be viewed as a positive step." At present in Georgia, over 15,000 businesses are licensed to sell alcohol. All must pass a background check and post a $500 bond for wine and beer, and a $2,500 bond for sales of liquor, before receiving a license from their local governing authority/jurisdiction and the DOR. When these businesses are issued

a citation by their localjurisdiction, it is then that the DOR's Administrative Hearing Office conducts hearings and issues fines, suspensions, and revocations of state licenses.

Studies have shown that concerted law enforcement efforts alone-to curb underage sales and consumption-are not enough. They must be combined and augmented with strong, well planned, and well developed training and educational programs.

"The goal of our training program for local law enforcement is to establish a protocol for them to provide more consistent reporting to the Department as required under O.C.G.A. 3-3-2.1," said Chet Bryant, Director ofthe Alcohol and Tobacco Division. "Utilizing the Division's twenty-eight Revenue Enforcement Officers, we want local officials to know that investigative assistance is available on a limited basis, and that we think it is vitally important to increase the overall law enforcement presence in the area ofalcohol sales to underage persons."

As stipulated in O.C.G.A. 3-3-2.1, theDOR is requesting that local jurisdictions submit information to a central location-the Alcohol and Tobacco Division-for processing. This information can consist ofa simple incident report outlining the facts ofa particular case. In tum, the Alcohol and Tobacco Division will enter the information into its computer system and make every effort

(See UNDERAGE on page 2)

CONTENTS

Commissioner's Letter

2

New Regional Manager

2

ETT Project

3

Retiree Refunds

3

Grocery Tax Reduction

4

\blumel9 Number 3

A Georgia Department ofRevenue tax develoement summary

COMMISSIONER'S LETTER

WEBB NAMED REGIONAL MANAGER

Dear Tax Professional:
During 1997 the Department has been busy implementing KPMG Peat Marwick LLP's "Blueprintfor Modernization," the long-term goal being to build a better, more efficient Revenue Department for the long-term benefit of Georgia's citizens.
Among the new positions that we have implemented to help us move forward is the Project Management Unit (PMU). Headed by Donn Massey, its first Director, who brings more than thirty years of program! project management experience and over twenty-five years of Information Systems development experience to the DOR, the PMU will playa critical "oversight role" in the Department. Specifically, the PMU will be responsible for keeping ongoing projects "on track," so that -ideally- they are completed not only on time, but on budget.
Given the current emphasis -per the KPMG "Blueprint"- on updating our computer systems, as well as continuing our day-today processing of tax returns and other documents during the year, the PMU (as Donn has quickly learned) will indeed evolve into one ofthe central "pivot points" in the

Department. Not only will the PMU keep the Commissioner's Office updated about the status ofprojects, but it will need to be continually flexible (as a manager) to insure that individual project workplans are adjusted as "circumstances" may require. The main reason that this is so important is because we want to be certain that the "user" (the particular Division, or unit who will be the "end recipient" ofthe completed project) is ultimately satisfied with the delivered product. This bottom-line result is in concert with the "real world", ofcourse: that the client's satisfaction always be of paramount importance.
So while I feel certain that Donn's busy schedule will-ideally-remain so for as long as he serves in that role, I also feel confident that the function of the Project Management Unit as outlined by KPMG Peat Marwick will quickly prove to be one ofthe most important "building blocks" for us as we move toward the twenty-first century.
Very truly yours,
u:Commissioner

Tim Webb, 54, of Columbus, Georgia, has been appointed Manager of the Columbus Regional Office, it has been announced by Fred D. White, Director ofthe Field Services Division.
"I have known Tim for many years," White said upon making the announcement. "He will make an outstanding Regional Manager."
A twenty-two-year veteran of the Department, Webb brings extensive experience in collections and customer service to his new position. Previously a Delinquent Tax Collector, "It has always been my goal to reach levels of efficiency and effectiveness to help the Department," Webb said.
Robert M. Goolsby, Assistant Director ofthe Field Services Division, welcomed Webb to his new position. "Tim's commitment to serving the taxpayers of Georgia and his desire to help his employees succeed make him a great choice to lead the Columbus office," Goolsby said.
Prior to joining the Department, Webb attended Young Harris College and Columbus State University before entering the banking and finance industry. He is the father of two sons, Tim Jr., and Marc.

UNDERAGE SALES TARGETED

(Continued from page 1)

"I also intend to offer our training materials for use by schools, churches, community

SALES TAX BULLETINS
The DOR's Sales and Use Tax Division

to follow up with administrative charges meetings, and others on a first-come, first- would like all dealers and retailers to be

where warranted.

served basis," Sgt. Pope said.

aware that the annual review process for

estimated tax filers, which normally takes

"We believe that Sgt. Pope's lesson plan is To help centralize and coordinate all requests, place every July, is anticipated to occur this

both a positive, proactive step by the De- anyone interested in obtaining further infor- year with the October 1997 return. Accord-

partment, and also another valuable compo- mation should contact: Training/Special ingly, dealers/retailers will need to pay close

nent ofour effort to assist local law enforce- Projects, c/o Alcohol and Tobacco Division attention to adjustments to estimated

ment," added Ronald Johnson, Assistant Di- at (404) 656-4252.

amounts on the October return.

rector ofthe Alcohol and Tobacco Division. "The bottom-line for the Alcohol and To-

***

The lesson plan offered by the Department bacco Division's effort is not only increased Regarding the new Sales and Use Tax Re-

stresses such subjects as investigative tech- education, but increased prevention," Com- port Form (the "ST-3") that was introduced

niques, recruiting and selection ofunderage missioner Jackson said. "Ifwe can help pre- in July, it may be reproduced (computer gen-

operatives (for use in "stings"), and opera- vent underage sales and consumption in any erated) by any dealer/retailer contingent

tions planning. Individual officers receive tangible way, then we feel that our efforts upon approval by the Division. Please con-

four hours ofcredit toward their annual man- will prove to be something that Governor tactMrs. Sylvia Maxwell either by mail (p.O.

dated training requirements.

Miller, and all ofGeorgia's citizens, can take Box 38040, Atlanta, GA 30334) orbytele-

justifiable pride in."

phone at (404) 656-4238.

--------------------Page2 -------------------

ETT PROJECT:
By RUBY CLARK ATLANTA-In 1997, the Department of Revenue's Motor Vehicle Division tag data base will process over 7 million "transactions." These include entering new tag information, changes of registration, and myriad other corrections that occur in Georgia's 159 counties.

QUICK AS A 'LINK'

As part ofan overall Department-wide modernization effort, the Motor Vehicle Division is meeting its stated goal of providing improved customer service to all Georgia motor vehicle owners because of great strides being made daily in its Electronic Tag Transmission (ETT) Project.

ETT enables all 91 counties that have currently come "on-line" to enter tag informa- Discussing tlI~ElectrOni~ Tag Transmission Project at the Clayto.tCountyTax Office are,

tion from their county tag office directly into from back to front, Ruby Clark ofthe DOR's Motor Vehicle Division, Patricia Hussey,

the Motor Vehicle Division's main data base. Clayton County Tax Commissioner, and staffassistant Janette Coleman. The ETT Project

Under the old record system, it was not un- has proved a notable"success story" to date between the counties and the DOR

common for there to be a 90-120-day says Milt Dufford, DORDeputy Commissioner "It's a great thing for us to be able to assist

"lag" between registration of a motor ve- for Motor Vehicles.

taxpayers when they come into our office

hicle and its "paper record" being first

by pulling up information on the screen from

mailed, and then data entered, into the MVD ETT began to take shape in Fiscal Year 1995 the on-line system," she says.

data base.

when one county was established on a "pilot

project" basis. In FY96, six additional coun- Echoes Lori Davis, who does computer pro-

The objectives of ETT are: 1) To update ties-Bulloch, Carroll, Clayton, Cobb, DeKalb, granuning for Clayton County, "Once we got

records promptly and make them available Whitfield-began transmitting data electroni- ETT set up, everything has gone smoothly.

for inquiry and updates within 36 hours; 2) cally with Douglas and Hall counties submit- It's basically running on its own now."

Eliminate duplicate data entry; 3) Enable the ting data by magnetic tape.

tag issuance process to become increasingly

And as more counties come on-line, the Mo-

"cost effective"; and 4) To result in improved As one of the initial counties to join the un- tor Vehicle Division's expectation is that ETT

customer service.

dertaking, Clayton County's tax commissioner, will continue to be a notable "success story"

Patricia Hussey, says that ETT has proved a not only for the DOR ... but for Georgia's

Now, with 91 counties on-line, and sixty ad- welcome and progressive step forward.

counties and taxpayers, too.

ditional counties indicating interest and giv-

ing their commitment to the project, it is clear that Georgia's citizens stand to be the ben-

RETIREE REFUNDS MAILED

eficiaries of not only improved customer ser- In mid-October, eligible federal and military der House Bill 3, they received the second

vice but, indeed, rapid service at that.

retirees in Georgia were mailed refund checks of four, equal yearly refund checks. The

from the Georgia Department ofRevenue per The reason? Because data that is transmit- the terms of House Bill 90 and House Bill 3. ted electronically by participating counties Those bills were passed during the 1995 ses-

checks for this group ofretirees will be paid out each October from 1996-1999.

is updated to the main data base in 24-36 sion of the General Assembly and duly signed hours. The bottom-line benefit is fresh and into law by Governor Zell Miller. accurate information that can be accessed

Eligible retirees who have questions regarding either House Bill 90 or House Bill 3 can call the DOR's special Federal Retiree tele-

by law enforcement (in the case of an accident, traffic violation, or other inquiry), counties, and other authorized users. "Given the problems that have been experienced in the past, I think it is obvious that transmitting data via ETT is the answer to Georgia's on-

The over 47,000 retirees eligible under House Bill 90 received their third offour, equal yearly refund checks. The checks for this group of retirees will be paid out each October from 1995-1998.

phone "Hotline." Available 24 hours a day, the numbers are as follows: (404) 657-6881 (within Metro Atlanta or outside the State of Georgia), or 1-800-817-1858 (outside Metro Atlanta but within Georgia only). Additionally, retirees can call their nearestDOR

line vehicle registration inquiry problems," For the more than 39,000 retirees eligible un- Regional Office, open from 8 a.m.-4:45 p.rn.

Page 3

GROCERY TAX REDUCED OCT. 1

ATLANTA-As part of the historic cut in the state ofGeorgia," Governor Miller said. also apply on purchases of alcohol and to-

state taxes enacted by Governor Zell Miller "I have always said that food, the very thing bacco products, as well as on other items

one year ago, on October 1 another one that sustains us, should not be taxed. But commonly available in grocery stores such

cent reduction of the state sales tax on gro- there is a big difference between talking about as toiletries, napkins, laundry detergents,

ceries took effect-the second year of a cutting taxes and making it happen - here vitamins, and pet food.

three-year phase-in which will completely eliminate the four-eent state sales tax on groceries by October 1, 1998.
This raises the total state exemption to three

in Georgia we're making it happen. Now, with the removal ofthe third cent, we're one final step away from completely eliminating this tax."

Purchases of eligible foods and beverages for home consumption that are made with food stamps or WIC Coupons will continue to be exempt from all state and local county

(3) cents on sales of eligible foods and bev- Foods and beverages eligible for the sales sales and use taxes.

erages. The initial two cents of the fourcent state sales tax was eliminated on October 1, 1996. The final one cent reduction in October 1998 will completely eliminate the (pre-October 1, 1996) four percent sales tax on groceries.

tax removal are defined in Section 3 of the Food Stamp Act of 1977. They comprise staple food products for home consumption such as meat, poultry, fish, bread, cereals, milk, soft drinks, and infant formulas packaged for home consumption.

The eligible food and beverage exemption does not, however, affect the collection of local option sales taxes with the exception ofthe Homestead Option Sales Tax (HOS1) in DeKaIb County.

Once the full four percent reduction has been enacted in October 1998, the tax cut will total an unprecedented $500 million.
"This is the biggest tax cut in the history of

The four percent state sales tax will remain on food sold for immediate consumption, for example, food ordered in restaurants, coffee shops, cafeterias, taverns, food carts, luncheonettes, or vending machine sales. It will

Dealers or retailers who have questions or need assistance are invited to call the DOR's Sales & Use Tax Division at the TrinityWashington Building headquarters in Atlanta at (404) 656-4060.

Taxpayers or businesses who would like to order Income Tax forms from the Department ofRevenue are invited to mail in the form below.

Forms can also be ordered utilizing either voice mail or fax-on-demand service by calling (404) 656-4293.

IT-101 REV ORDER FOR INCOME TAX FORMS
Withholding Tax Guide

FORMS ARE MAILED THIRD CLASS. PLEASE ALLOW 3 TO 4 WEEKS FOR DELIVERY.

501

Fiduciary return> (5)

G4 __ 303

Employee Withholding exemption certificate Request for extension> (5)

550 __ 552

Claim for refund> (10) Tentative carry back-corporation> (10)

_ _ 500ES Individual Estimated Income Tax> (10)

__ 553

Tentative carry back-other> (10)

500

Individual return

560

Tax prepayment (Individual Taxpayers (10)

500EZ Single Individual Short Form

560C Tax prepayment (Corporation Taxpayers (10)

511

Form 500 instructions

600

Corporation return

_ _ 500X Individual return-amended> (10)

611

Form 600 instructions

_ _ 500UET Estimate Penalty Computation

600S Sub" S" corporation return

>QUANTITIES OF ORDERS ARE LIMITED. IF MORE FORMS ARE NEEDED, CALL 404-656-4293. CALL NUMBERS LISTED BELOW FOR THESE FORMS

Intangible Returns G-1, G-3, G-6 602ES Sales Tax/Motor Fuel

404-656-4247 404-656-4181 404-656-4191 404-656-4086

611S __ 700

Form 600S instructions Partnership return> (5) ITCR Composite Return> (2) Other

DEPARTMENT OF REVENUE INCOME TAX DIVISION P.O. Box 740389 Atlanta, GA 30374-0369

PLEASE TYPE OR PRINT NAME AND ADDRESS BELOW NAME ADDRESS CITY

STATE

ZIP CODE

--------------------Page4