How to Use OTC Reports & Resources

Presented By:

Dana Ratcliffe, City of Weatherford - City Treasurer Breck Buchanan, MBA, City of Tulsa - Treasury AnalystDavis Puryear, City of Oklahoma City - Assistant City Treasurer

2013 OML Conference

Presentation Overview

• Oklahoma Taxpayer Access Point (OKTAP)– What is OKTAP– Access & Navigation – Reports

• How to use the information – Tulsa– Weatherford

What is OKTAP

• Central Access Point For

– Sales & use tax collection details

– Permit and taxpayer research

– Tax payments

– Business Registration

OKTAP Access & Navigation

• Access and Getting Started – Register with the Oklahoma Tax Commission

• Contact Dave Francis, OTC – (405) 522-6600

• Navigation – https://oktap.tax.ok.gov/OkTAP/Web/_/#1– How to log-in – Accessing each months return– Running reports

Reports

• Account Details – Total sales & use tax collections by COPO

• Collection Details – Summary of revenues collected for your municipality by taxpayer

• Collection By NAICS Code – Summary of collections by industry

• Tax, Penalty, and Interest – Total collections and penalty/interest breakdown by taxpayer

• Balance Due – Balances owed from an audit assessment and/or a filed return with no payment

• List of Delinquent Taxpayers – Taxpayers who failed to file a report for a two consecutive months

• New Sales Tax Permits – All new permits issued during the month

• Canceled Sales Tax Permits – Permits canceled during the month

• Audit Details – A summary of audits that were assessed for the period

Tulsa: Data Analysis

• Data Analysis Overview

• How We Use The Data– Sales Tax Permit List

– Sales and Use Tax Collections Analysis

– Delinquent Listing / Balance Due Listing

– Monthly Reports

COT Treasury

Data Repository

Data Analysis

Field Inspections

Reports

OTC Tax Data

Audit Leads

BusinessLicense

Approvals

Data Analysis Process

Enforce Municipal

Codes

Data Analysis Process

Obtain Data •Confidential Report Data – “Old Data”•OkTAP Data - “New Data”

Compile Data •Combine Old and New Data•Can use ACL Analytics, Access, or Excel

CreateReports •Visualize the data in a meaningful way

•Excel is a great tool for this

Take Action•Make decisions and take corrective actions

Sales Tax Permit Analysis

• Check permits for proper COPO registration

– OkTAP: • Retailer Permit Search / Sales Tax Permit Lookup• Pull lists of permits by:

– Name, Street, City, State, ZIP or COPO• Only displays up to 250 results per search• Check streets/addresses that border your city

Sales Tax Permit Analysis

• Check permits for proper COPO registration– batchgeo.com:

• Free tool to map up to 250 addresses at once

Sales Tax Permit Analysis

• Can double check correct COPO / tax rate with OTC Sales / Use tax rate locator: http://oktax.csa.ou.edu/Rate_Locator/

• Sample Address: Tulsa City Hall, 175 E 2nd St, ZIP: 74103

• Compare registered permits against other data sources:

– City of Tulsa Utilities Data (commercial customers)

– Building Permit Applications– Special Events Permits– Dun and Bradstreet Business

Directories

Sales Tax Permit Analysis

Delinquent and Balance Due Lists

• Combine together:• Delinquent Taxpayer List• Balances Due: Filtered for vendors that are:

– Open– Not in collections – Not on a payout plan

• Check the list when vendors apply for new or renewed business licenses

• Listing is updated monthly

Collections Analysis

• Top-Down Approach

• Start: High Level Economic Summary

– What is happening on a macro level that may explain collections trends?

• Fed Beige Book• Kansas City Fed• State Treasurer: Oklahoma Economic Report• News Reports: CNBC, Wall Street Journal, Yahoo! Finance

Collections Analysis

• Regional Sales Tax Collections Summary

– Compare this month’s change in collections to:

• Other MSA Cities• Other Cities in the State

Collections Analysis

• Industry Analysis

– What industries had significant changes?– Is the change widespread, or isolated to one or a few vendors?

Collections Analysis

• Vendor Analysis

– Did any vendors have unusual changes?

• Reporting Period Totals: Zero balance, unusually large, unusually small, or negative periods

• Unusual prior period adjustments• Can the change be easily explained?

– Weather– Refunds– Company Press Releases– Word of Mouth– News Reports– Company SEC Filings

Vendor Analysis Tool: Tax Dashboard

• Summarize collections data into Excel spreadsheet:– Combine Old (pre OkTAP) and New OkTAP Data with Excel– Summarize by tax filing period– Use conditional formatting to highlight periods with unusual totals

• XX% or more below average (yellow)• XX% or more above average (green)• Negative (pink)• Zero (red)

– Sparklines (“Trends” below) give a quick glance of totals

• Notice the low point?• Scrolling further to the right reveals this to be the 3/2012 tax filing period• This will be sent to the OTC for review

Final Step

• Sales and Use Tax Issues– Compile a list of identified issues– Issues list sent monthly for review to Oklahoma

Tax Commission Taxpayer Assistance – Primary Contact: Dave Francis

Weatherford Revenue Review

Monthly Review

Top 10 Taxpayers

Confirm new businesses are remitting

Review credits and refunds

Our process doesn’t require dedicate staff