Input: S&L tax systems fuel government spending

State and local governments will spend heavily on information technology products and services related to tax and revenue over the next five years, according to a new report.

Reston, Va.-based market research firm Input Inc. reported Thursday that state and local spending on these systems will increase from $325 million in fiscal 2005 to $450 million by fiscal 2009.

But that's a conservative estimate, researchers said. Given the measurable returns that advanced systems can provide and the rising number of successful implementations, Input predicts spending for tax and revenue systems may surpass the forecast.

The market opportunity is fueled by continuing advancements in integrated tax and accounting systems, electronic tax filing, automated collection and delinquency and recovery systems, Input said.

"While tax and revenue system initiatives were among those delayed or canceled by state and local governments during the recent budget crisis, new tax and revenue systems are increasingly being looked at to improve cost efficiencies in operations," said James Krouse, Input's manager of state and local market analysis.

Input said IT contractors should be open to alternate funding methodologies to be successful in the tax and revenue vertical market.

"Government jurisdictions are continually reviewing creative funding methods in tax and revenue collection, whereby tax receipts and savings in efficiency self-fund new systems, eliminating the need to dip into tight general funds," Krouse said.


About the Author

William Welsh is a freelance writer covering IT and defense technology.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.