Va. Tax Refunds Taking Slow Route

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RICHMOND, June 14 -- Revenue commissioners across Virginia report that taxpayers are waiting longer for state tax refund checks than they have in years, with some taxpayers getting their checks months after filing instead of the customary days or weeks.

State finance officials blame the delays on computer problems and filers' confusion over this year's revamping of a long-used tax form. The rate of errors on returns has doubled this year, with 150,000 of the 2.1 million tax returns showing some kind of mistake requiring a review by hand, Finance Secretary John W. Forbes said.

But state lawmakers, who are fielding complaints about delayed checks, question that explanation. Several suggested that administration officials may be intentionally delaying refund checks until the fiscal year ends June 30. That, they say, could bolster the state's revenue picture and help guarantee that Gov. James S. Gilmore III (R) will fulfill his promise to eliminate the personal property tax on cars and trucks as he leaves office next year.

"You can manipulate the surplus at the end of the year by not sending refunds out, and here we are at the end of the year," said Del. Harry J. Parrish (R-Manassas), co-chairman of the House Finance Committee.

Several lawmakers made similar complaints last year when refund checks arrived late. Finance officials denied manipulating the timing of refund checks, but lawmakers' suspicions lingered.

Parrish and fellow Finance Committee Chairman C. Richard Cranwell (D-Roanoke) said they may ask administration officials to publicly explain the delays.

Parrish said he told state finance officials today: "It certainly looks as though you're doing the same thing as last year. . . . Your excuses are feeble at best."

Del. Vincent F. Callahan Jr. (R-Fairfax) said he may ask the state's Joint Legislative Audit and Review Commission, which he chairs, to investigate the delays.

"I'm suspicious," Callahan said. "If the state owes you money, you should get it back."

Forbes said the administration is not delaying tax refunds intentionally. "Absolutely not," he said. The problems are caused by a new optical scanning system, a glitch in a popular software preparation program and misunderstanding of new tax forms, he said.

Four of five state tax refund checks are mailed within 12 days, Forbes said, who expressed concern about the increase in the number of forms requiring individual reviews.

Forbes was appointed finance secretary this month, replacing Ronald L. Tillett.

The skepticism of senior Republican lawmakers underscores the distrust between the General Assembly and the Gilmore administration in the second full year of GOP control of the State Capitol. Even in the House, where Republicans stayed allied to Gilmore during the budget impasse this year, many lawmakers say relations with the governor are deeply strained.

The issue of revenue is particularly sensitive because the schedule of Gilmore's plan to eliminate the tax on the first $20,000 of a car's value is tied to measures of Virginia's economic performance.

The governor angered lawmakers in December by relying on what many called shaky financial projections to keep his plan on schedule. Lawmakers are wary of a repeat performance as the fiscal year ends and Virginia's race for governor heats up.

Amid the intrigue over delayed tax refunds, Gilmore announced today that revenue for May was healthy, meaning that revenue targets were within striking distance with a month to go. If the fiscal year ends with revenue one-half of a percent below projections, the car-tax repeal would automatically freeze at its current level, thrusting the issue to the center of the governor's race.

Neither Republican Mark L. Earley nor Democrat Mark R. Warner has said what he would do if the car-tax repeal froze because of a weakening economy.

Meanwhile, commissioners of the revenue, who are elected locally, are handling more complaints than they can count.

Several said they are struggling to get straight answers from tax officials in Richmond.

"They're not going to be honest and say, 'We're holding money back,' " said Sharon M. McDonald, the Norfolk commissioner of the revenue. But "we're having more trouble this year than last year," she said.

Jean Marshall Crawford, chief deputy in Arlington's commissioner's office, said that the delays are frustrating taxpayers. "It would appear from our phone calls that it's the worst that we've ever encountered, and it has continued longer."

Washington Post

-- Anonymous, June 15, 2001

Answers

Why don't they stop with the serving suggestions regarding end of year savings and all the other inserted, off point crap and let the real reason stand on its own (2nd paragraph)...Their computers are trashed. I grow weary with the spin.

-- Anonymous, June 15, 2001

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