The Tax Department’s current-year savings target is $38.3 million, reflecting a 10.35 percent reduction in projected agency spending.
At this time, the Department projects that it will achieve at least $28.3 million of the spending reduction target. Attainment of additional savings may result in foregone revenue collections with values in excess of the spending reductions. Further savings will be implemented only if such actions will result in a net positive impact to the State financial plan.
Major Savings Initiatives
The Tax Department is implementing the following actions to achieve their savings target:
Reduce staffing costs – The Department will maintain a hard hiring freeze, eliminate 25 vacancies, and reduce overtime and the use of temporary “seasonal” employees. Every effort will be made to mitigate negative impacts to revenue collections and customer service.
Reduce mailing costs – The Department will no longer mail Personal Income Tax packets to the taxpayers who use paper forms. These taxpayers will be directed to the internet or their local library. Hardship cases will still be able to obtain forms and instructions directly from the Department.
The Department will also reduce the number of forms mailed for sales tax, and wage and withholding reporting. The Department will continue to reduce other mailing costs where a more efficient delivery method exists.
Reduce resources assigned to STAR Property Tax Rebate program administration – The Department will delay staffing the STAR phone line until mid-November. Until then, homeowners can obtain information via the web or an automated phone line.
Reduce resources assigned to PIT refund calls – The Department will delay staffing the tax refund hotline until mid-April. Until then, taxpayers can obtain refund information via the web or an automated phone line.
Reduce toll-free telephone costs – The Department will no longer provide toll-free service for out-of-state or foreign calls. Toll-free service will continue to be available for calls from New York locations.
Eliminate walk-in services for taxpayers – By May 1, the Department will eliminate the services currently provided to walk-in traffic. The Department is developing a multi-prong plan to educate taxpayers as to how to conduct their tax business in a more efficient manner. The Department will also work with other agencies and bureaus to ensure that taxpayers’ needs are met to the greatest extent possible.
Redesign 1099-G mailings – In January, the Department will send taxpayers their 1099-G prior year refund information in a new, re-engineered format. This new format will qualify for a reduced postage rate.
Reduce undeliverable mail – The Department is determining how to reduce undeliverable mail volumes as returned mail is inefficient and costly, and because the United State Postal Service has begun to charge increased fees and rates.
Reduce general expenditures, including:
Reducing printed material;
Minimizing travel in all areas;
Reducing telephone costs – eliminating unused lines and ensuring that voicemail is used efficiently;