Chapter 5
Collecting Multiple Tax Types
Chapter 1
Online Tax Collection
Chapter 2
Finding the Right Tax Software
Chapter 3
Improving Tax Compliance
Chapter 4
Increasing Tax Revenue
Chapter 5
Collecting Multiple Tax Types
As more and more internal and customer-focused business processes become fully automated and are brought entirely online, the case for local governments to do the same has become increasingly clear. It’s more critical than ever that agencies begin to implement an intuitive, uncomplicated tax collection software solution.
But how does this work when you factor in multiple different tax types—sales tax, occupational tax, tourism tax, payroll tax, and so on? The reality is that relatively little changes when implementing a single software solution to collect multiple taxes—except for the obvious benefits of automation being applied to a wider array of government tax types.
For businesses, one of the major benefits is having all tax filings and forms available in one system so they no longer have to manage multiple accounts and logins. Within one portal, taxpayers can compare all remittances and access a history of past filings.
Local governments, on the other hand, benefit from having a single source of truth where they can easily identify taxpayers who may be in one system but not another—a task made far more challenging when relying on more than one system for collecting taxes. Having one system also means everyone is operating from a single dataset versus multiple systems.
Here’s a look at the finer details of automating tax collection for multiple tax types, to provide a clearer understanding of the myriad benefits a fully automated solution can provide to all parties.
Leveraging Automation Across Multiple Tax Types
Leveraging a powerful tax system that incorporates automated tax collection can help support a community’s collection of multiple tax types—from sales and use tax, to occupational tax, lodging tax, and many others. What does this look like in practice? Take a look at a couple of examples.
Utilizing a purpose-built short-term rental compliance solution can help streamline and simplify the lodging tax collection process. Furthermore, integrating short-term rental identification with registration and tax collection under one platform ensures consistent record keeping and access for all parties involved, ensuring you don’t just know who’s renting but that they are also fully compliant from end to end.
From increasing revenue collection efficiency and simplifying compliance to funding community initiatives and addressing critical needs, this unique automation transforms the tax collection process, ensuring accurate and timely revenue allocation. In this way, local governments can ensure they maximize tax revenue benefits from STRs as they work to create a thriving community for all.
Success Story
How Okaloosa County, FL Uses GovOS to Collect and Manage Over $30M in Annual Tourist Development Taxes
Ensure Occupational Tax Compliance: A 15-min Online Session for Finance Leaders
Occupational Tax Collection
Software providers can work alongside counties to streamline occupational and business tax collection. A software solution can enable businesses to make automated clearing house payments, submit credit card payments, and have access to general tax filings.
Math is checked automatically, and taxpayers can manage their own overpayments since they can log into the system and request a refund or apply it to next year’s return. Additionally, because these tax collection automation systems are cloud-based, the software provider, rather than the county, manages data security.
With the right tax collection automation solution, these benefits can be applied to any community and any local government with the different tax types.
Bring Automation to All Tax Types with Tax Collection Software
If you’re going to automate taxes, automating across the board has many advantages. Implementing tax collection software with the right vendor makes scaling across multiple tax types simple. Imagine what your teams could accomplish if they no longer had to spend time checking if the same business is compliant across different tax systems.
Consider taxpayer compliance resulting from access to an automated system with intuitive forms and auto-calculations that lets them submit everything for every tax type directly to their local government. If your agency is looking to provide a smooth experience for both your staff and taxpayers, automation across all tax types unique to your jurisdiction is key.
