The Department of Revenue and Taxation has identified 74,600 delinquent tax accounts worth close to $30 million as of the last tax period, but the agency doesn’t have the funds and personnel needed to chase the tax evaders.
According to its 2013 budget submittal, the department had missed the 90-day deadline for issuance of notices to delinquent taxpayers “due to budgetary constraints and lack of personnel.”
Rev and Tax said the postage cost $426,000 for the required notices, and the amount excluded personnel and supply.
Although collecting delinquent tax dues is one of DRT’s key goals for the upcoming fiscal year, the proposed 2013 budget doesn’t look promising for the department.
The Governor’s Office has requested $9.78 million for DRT, plunging from the current year’s level of $10.25 million.
And despite its perennial complaint about manpower shortfalls, DRT is not likely to hire additional staff in 2013. Its proposed allotment for personnel drops from $9.18 million to $8.67 million.
In its 2010 Citizencentric report submitted to the Office of the Public Accountability, DRT said the scarce manpower was compounded by “outdated or limited equipment such as computers and printers, which exacerbate the ever increasing workload of DRT personnel.”
But the department said it makes do with a limited staff “to maximize the use of all resources available in an effective and efficient manner.”
In an effort to identify missed revenue potential for the government of Guam, DRT is seeking to “identify, establish value and create tax assessment records of all properties (lands and buildings) in Guam.”
Last week, DRT began inspecting commercial improvements on real properties. The department’s memo said the inspections, which end on Aug. 31, “are designed to ensure the accuracy of property record data and to update existing assessment records.”