Agency Accomplishments

Tax Compliance

Began implementation of a state-of-the-art tax compliance program, the Modern Integrated Tax System (MITS), which, once fully implemented over the next four years, is expected to bring nearly $200 million in uncollected taxes, and $100 million annually in perpetuity. After just the first month of implementation, MITS has already identified and recaptured over $3 million in delinquent taxes.

Using MITS technology, the Comptroller's Office was able to identify 1,666 Marylanders who owed back child support in the Unclaimed Property files and sent $670,000 to the children and families who were owed the money.

Renewing the emphasis on tax collections, in the last two years, the Comptroller's Office has recaptured more than $356.5 million in delinquent individual income taxes and $473.2 million in delinquent corporate taxes for the state.

Entered into a first-of-its-kind partnership with the U.S. Department of Treasury that has yielded $21 million to state coffers by allowing Maryland to intercept federal vendor payments to satisfy state income tax liabilities.

Led the successful effort to disallow the 'captive Real Estate Investment Trusts (REITS) deduction that has already led to $14.3 million in settlements from two major corporations.

Aggressively cracked down on Delaware Holding Companies and other tax avoidance strategies, with recent legal victories in Maryland Tax Court against Talbot's and Nordstrom.

Led legislative effort to shut down fraudulent and unqualified tax preparers.

Worked with the General Assembly to pass a corporate reporting law that will provide information about the revenue potential of combined reporting.

Field Enforcement

Successfully kept nearly 185,000 packs of untaxed cigarettes and more than $360,000 worth of illegal wine, distilled liquor and beer off our streets.

Partnered with law enforcement agencies across the state to investigate and enforce the state's updated video gaming ban. This includes extensive audits in Southern Maryland and working with the Baltimore City Police Department. Since September, the two agencies have seized a total of 30 video gaming machines and more than $70,000 from eight businesses after observing illegal activity during routine inspections.

Customer Service

Introduced B-file online filing service for Maryland businesses. Along with the flagship I-file program for individual tax payers, Marylanders can file, free of charge, electronically on our website.

Launched online BillPay system which allows taxpayers to pay their income tax bill and, if they so choose, allows them to schedule a payment as late as April 30th.

Pioneered outreach efforts that have led to record numbers of electronically filed returns. In 2008, over 1.5 million returns were filed electronically-- the first time ever that the Office received more electronic than paper returns filed. So far this year, we are on another record setting pace as electronic filing is up over 13 percent from compared to the same time last year.

Reenergized customer relations efforts and practices that have led to increasing numbers of Marylanders served across the board: In the last fiscal year, more than 65,000 Marylanders visited our offices around the state for assistance and for free tax return preparation; Agency's taxpayer services employees answered over 1.1 million phone calls and responded to 34,703 emails.

Financial Stewardship

As a member of the Board of Public Works, Comptroller Franchot has worked with his colleagues to enforce the State's MBE participation goals and support the most efficient use of taxpayer dollars.

As Chairman of the Board of Revenue Estimates, the Comptroller has convened three successful Economic Advisory Forums. These forums have given the Board a chance to hear from respected CEOs and small business owners about current economic conditions, and to factor those assessments into the State's updated revenue forecasts.

As Vice-Chairman of the State Retirement and Pension Systems, Franchot served as a primary catalyst of a multi-billion asset reallocation that will diversify the System's assets, maximize our long-term returns on investment, and reduce our exposure to risk.

Through our Central Payroll Bureau, Comptroller Franchot helped to negotiate an agreement that will allow State of Maryland employees to contribute to the Maryland College Investment Plan (MCIP) through automatic payroll deductions.