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Department of Finance touts faster tax refunds, lower interest costs and increased returns from auditing; unclaimed property returns top $130M
Summary
Finance Director reported reduced personal tax refund processing times (exceptions down to 29 days), lower interest expense on refunds, growth in unclaimed property returns (~$130M returned to ~16,000 claimants) and progress on DBA registration, short‑term rental tax and GEAR efficiency projects.
The Department of Finance used its Joint Finance Committee orientation to highlight several administrative improvements officials say will save money and speed service.
Director (Department of Finance) told the committee the Division of Revenue cleared legacy refund backlogs and reduced exception processing time for individual income tax refunds to 29 days (from 59), decreasing interest payable on delayed refunds and improving taxpayer service. He said that in calendar year 2024 the state paid about $3.8 million in interest on PIT refunds and expects that figure to fall materially as processing time and automation improve.
The presentation also noted $130 million in returned unclaimed property to roughly 16,000 claimants last year and the expansion of a money‑match program to return small balances without a formal claim. Finance staff previewed new DBA outreach (about 58,000 registered entities notified) and a short‑term rental tax implemented at 4.25% that began phase‑in for new contracts in January.
Efficiency work: Finance described GEAR continuous‑improvement projects and an ERP modernization schedule; the division expects to use recently contracted CPA firms and a state SWAT accounting team to assist agencies with complex accounting and to close fiscal year processes earlier.
What the committee asked for: lawmakers sought details on short‑term rental compliance, the revenue trajectory for the new recreational marijuana receipts and the timeline for reclassification of positions held during IRAS/IT modernization; Finance noted some intentional holds pending post‑implementation staffing needs and said reclassification timing can vary but may take months to years depending on scope.
