News Release
June 30, 2008 - Department of Taxation
Moving Forward with Technology Modernization
Project
COLUMBUS, Ohio – The Ohio Department of
Taxation is moving forward with a major technology upgrade
designed to increase the scope of customer services, the
efficiency of operations, and the effectiveness of tax
collections.
Over the next four-and-a-half years, the upgrade will replace
the department’s 27 existing computer systems, some dating
back to the 1980s, with a coordinated package of hardware and
software called STARS, or the State Taxation Accounting and
Revenue System.
“This project is a critical investment for the future of the
department and a significant commitment to building a more
effective, efficient operation.” Ohio Tax Commissioner
Richard A. Levin said.
The department estimates that the project will more than pay
for itself by reducing costs and increasing revenue
collections.
During the first of six phases, the STARS project will
replace the computer systems that help administer the state
sales and use tax, the corporation franchise tax, and
employer withholding for state and school district income
taxes. Phase One changes are scheduled for completion by the
end of 2009; computer systems supporting all the remaining
taxes are scheduled to come online by the end of 2012.
STARS is expected to generate a $271 million return on
investment during the first six years of operations through a
combination of reduced expenses and more efficient tax
collections. The new system is also expected to greatly
expand customer service options, including the potential for
taxpayers to directly access and manage their tax
accounts.
The Ohio General Assembly approved the project last year in
House Bill 119, the two-year operating budget bill. The
project cost, estimated at $53.5 million, will be financed as
a capital expense through the use of certificates of
participation.
The department, in collaboration with the Ohio Office of
Information Technology, recently awarded a contract for STARS
to a vendor team lead by EDS, the Texas-based technology
firm. Other vendors on the team include Oracle, CGI and Menya
Communications.
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CONTACT: John Kohlstrand at (614) 644-3858
or Mike McKinney at (614) 466-5461.