Elizabeth A. Carpentier, Director

South Carolina Department of Revenue

The South Carolina Department of Revenue in 2001 implemented the first year of its “Updated Strategic Plan” in the midst of an unprecedented budget reduction, a prolonged hiring freeze and other major administrative challenges. In addition to setting an annual business plan, the Department created a Budget Reduction Change Management Plan to meet budget reduction goals and to ensure the Department’s mission of collecting revenue for the state is not undermined in any manner. Staying on track with our strategic plan in light of these events was, in itself, a major achievement and the Department set a pace for itself by constructing a series of five-year plans for implementing major objectives. Each five-year plan includes tasks such as benchmarking and best practices research, assessment of our current status, analysis of resource requirements and barriers and staging of implementation for improvement or innovation. The Department made substantial progress in many FY 00-01 goals and projects, and some of our major achievements are listed below.

Nonfilers: Many states have invested heavily in data warehousing to identify nonfilers. The Department researched these “best practices” and has implement ed data matches which added new filers and increased revenue collections for the State and local governments. For example, the Department’s business personal property project generated new assessed values of $1.7 million for local governments. The agency’s nexus unit doubled previous collections during the fiscal year to $2.8 million.

Revolutionize reporting and payment:South Carolina remains # 1 in the percentage of its taxpayers filing individual income tax returns electronically. New for fiscal year 2000-2001 were web applications for individual income tax extensions and declarations of estimated income tax. In a collaborative effort with the state Budget & Control Board’s Office of Information Resources, the Department added a payment module to allow credit card payments for taxes owed. Installment agreements were automated and “direct check” software was also added last year. Electronic data interchange (EDI) and Electronic Funds Transfer (EFT) increased to 501 taxpayers, representing 16,500 returns and $339 million in revenue collections. Also, business taxpayers reporting zero sales can now file by telephone their sales and withholding tax information, a major convenience for the taxpayer.

As part of DOR’s commitment to Enterprise Government and Systems, the agency purchased “Computer Assisted Mass Appraisal” software and negotiated with the vendor to ensure counties would not have to pay to participate in this project. To date, seven counties have committed to this project.

The Department’s national award-winning tax education program called, TaxsmART: Picture Your Taxes, was expanded to include 10 elementary schools. TaxsmART also received the Greenville Partnership award for its tax education achievements. In the TaxsmART program, children depict through their artwork state services financed by revenue collections. Winners are selected among the entries.

Significant technology infrastructure improvements were completed in FY 00-01. A new “model office environment” with updated software was implemented. Web content management software was purchased and is being installed to help the Department continue to improve its website, which has been recognized nationally for its user-friendly operation. Rev’n U, our employee online training center, hosts 250 online courses through the State’s Smartforce employee education contract, and has helped agency employees stay abreast of changing technology.

The Department continues to be a driving force in the one-stop business registration project involving state agencies, local governments and businesses. This year, the First Step, a links web page, was implemented on the state portal, MySCGov.com. Also, in FY 00-01, the DOR implemented its automated DOR registration page on its on website.

In other areas, DOR is extremely proud of having reached 96% of its Equal Employment Opportunity hiring goal, placing it second among state agencies with more than 500 employees. DOR remains committed to balance and fairness in its hiring and promotion practices.

The Department’s goal of recruiting the best employee possible has been impeded somewhat by an indefinite hiring freeze. However, DOR has focused its efforts on improving employee morale and well-being during the prevailing stressful budget times, and has implemented succession plans as employees accept separation and retirement incentives or are part of the necessary reduction in force. Tax law training plans have been significantly updated and improved, with future plans to create web-based courses and an electronic encyclopedia of tax law. A second session of DOR’s Executive Development program trained 16 more employees who will eventually fill leadership roles within the agency.

DOR spent significant time in FY 00-01 aligning our reporting to the Strategic Plan process. Each employee’s position description and Employee Performance Management System (EPMS) planning stage was rewritten to specifically align job duties to the Department’s Strategic Plan and to ensure State-ordered mandates are met.

The improvements implemented in the past year combined with future initiatives and goals, means the South Carolina Department of Revenue will continue to be one of the state’s most efficient and effective links to the State’s citizens.