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The Baltimore Business Journal: Maryland Comptroller's Office seeks OK for $159.7 million to replace tax processing system
November 30, 2018
The Maryland Comptroller's Office is seeking approval of a $159.7 million contract to upgrade the state's tax processing system.
Comptroller Peter Franchot's office issued a request for proposals earlier this year for bids to replace Maryland's 25-year-old tax processing system and collections system. Franchot said new systems are needed so the state can accurately process the 3.5 million tax returns it receives every year and disburse the funds to municipalities.
Pembroke, Massachusetts-based Revenue Solutions Inc. is slated to receive the contract. The Board of Public Works, which Franchot sits on along with Gov. Larry Hogan and Treasury Nancy Kopp, will vote on whether to approve the contract on Dec. 5.
Revenue Solutions works with city and state governments across the U.S. Another company, Fast Enterprises Inc., submitted a bid but the proposal did not include all of the services the Comptroller's Office requested.
"Our system will be much quicker will have the most updated and modern security structure and we will be able to deliver and even more effective and efficient product for the state," Assistant Comptroller Joseph Shapiro said in a statement.
Franchot's chief of staff, Len Foxwell, earlier this year called the replacement "one of the most ambitious projects of its kind now being undertaken in the United States."
The Comptroller's Office placed some of the blame for the misdirection of more than $21 million worth of local income tax in 2016. The office collected the proper amount of tax revenue, but some taxpayers were not classified in the proper taxing districts causing some funds to be distributed to the wrong municipalities.
The contract will be fully funded by the state's general fund.