Collection of Communications Sales and Use Tax report on audit for the year ended June 30, 2008

COLLECTION OF COMMUNICATIONS SALESANDUSE TAXREPORT ON AUDIT FOR THE YEAR ENDEDJUNE 30, 2008 August 28, 2008 The Honorable Harry R. Purkey Chairman, House Finance Committee The Honorable Charles J. Colgan Chairman, Senate Finance Committee Ms. Janie E. Bowen Commissioner, Department of Taxation th Chapter 780 of the 2006 Acts of Assembly (HB 568), 7 enactment clause requires that the Auditor of Public Accounts certify when the taxes and fees collected in a fiscal year under the provisions of the act are at least equal to the amount of revenue collected for the taxes and fees repealed or amended by this act for the fiscal year ending June 30, 2006, at the tax rates that were adopted on or before January 1, 2006, plus the annual cost to the Department of Taxation to pay for the administration of the Virginia Communications Sales and Use Tax. We have determined the total communication taxes and fees collected for the period July 1, 2007 through June 30, 2008 exceed the total taxes and fees repealed or amended by the act for the period July 1, 2005 through June 30, 2006 plus the Department of Taxation’s annual administration cost as shown below. The reported amounts include adjustments for amended returns and other documentation received by the Department of Taxation that affected the communication taxes collected for the reported period. There may be other matters that we are not aware of that could also affect the ...