Virginia DMV Talks SETS
In early 2019, SICPA announced the successful launch of the new Virginia Excise Tax System (VAETS). VAETS, which is based on the SICPA Excise Tax System (SETS), replaced a 20-year-old tax filing system and aimed to increase usability for taxpayers, enhance the ability of the Virginia Department of Motor Vehicles (DMV) to reliably collect data on fuel entering the Commonwealth, and ensure accurate and timely payment of the taxes due.
More than a year after the launch of VAETS – and in the midst of the COVID-19 crisis, which has placed unprecedented strain on state budgets and magnified the importance of accurate tax collection – we sat down with Tully Welborn, Director of Strategic Management Services at the Virginia DMV, and Tammy West, Tax Services Director at the Virginia DMV, to talk about the process of launching the new system and the impact that it has had.
Looking back to 2019, both Tully and Tammy stressed the urgency for the DMV to replace its previous excise tax management system, which created barriers for taxpayers and led to additional work for state officials. According to Tully, the stand-up of the new system happened in deep partnership with taxpayers: “throughout the project planning and implementation stage, the Virginia DMV engaged with tax payers and solicited feedback about the challenges associated with the current 20-year-old legacy system, as well as key elements/functionality of the new system. DMV and SICPA team members also worked closely together to provide training and technical assistance on VAETS, so taxpayers would have a level of comfort by the time the system was fully implemented. The Virginia DMV and SICPA relied heavily upon recommendations from the taxpayers who volunteered to participate in pilots and as subject matter experts in the fuel tax community for guidance along the way.”
That collaboration – combined with the unique features SICPA implemented in VAETS – has led to a marked improvement for filers. “The most noted improved functionality of VAETS over the previous system is having everything in one place for the filers. In VAETS, the filer can set-up an account, manage access to their account, apply for a license, file returns, correspond with DMV and make payments,” said Tammy. She also noted that “filers enjoy that they can review and address return issues right away. VAETS allows them to resolve their issues before submitting the return on the same day.”
“We have received a lot of positive feedback from our customers. Customers are really excited that they can file returns and make tax payments in the same system. They also continuously comment on how the system is so user friendly,” said Tammy.
“At the same time, DMV staff benefits from a single system to perform their job functions, where previously they had to navigate between multiple systems,” said Tully. With VAETS in place, licensing, collections, revenue distribution, and refunds, as well as enhanced reporting, reconciliation, and auditing functions exist in one streamlined system for DMV officials.
Especially now, clear and accurate tax collection is paramount. States across the country – including Virginia - are grappling with massive expenditures and decreasing tax revenue as a result of the COVID-19 crisis. In Virginia, fuel taxes account for “$1 billion in annual revenue to support the Commonwealth Transportation Fund, which invests in critical transportation and infrastructure projects that help support the economic vibrancy of local communities and improve quality of life for Virginia residents.” Ensuring the timely and accurate collection of that revenue is more important than ever.
Overall, according to both Tully and Tammy, the speed of implementation of VAETS, the increased usability for taxpayers and DMV officials, and the more accurate, streamlined tax collection process has made VAETS a significant improvement over previous tax management systems, and is a critical tool in Virginia’s efforts to both support customers and collect vital tax revenue.
