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Implementation of New Comprehensive Tax System Begins

The Kentucky Department of Revenue (DOR) has taken a major step toward replacing many of its legacy tax collection systems with a comprehensive new tax system.  On behalf of DOR, the Finance and Administration Cabinet recently selected Electronic Data Systems (EDS) as the state's partner for the implementation of the new Comprehensive Tax System (CTS). 

The Finance and Administration Cabinet's vision for CTS is to benefit Kentucky citizens by enhancing the administration and collection of revenue through the use of technology and streamlined processes. The overall goals and objectives for the CTS are:

  • Decrease the taxpayers’ burden to comply with tax laws;
  • Detect and eliminate waste, fraud and abuse;
  • Collect, report and interpret tax information in a timely manner;
  • Improve taxpayer assistance;
  • Improve productivity and decrease overall cycle times;
  • Reduce system support costs; and
  • Provide self-service access to taxpayer information via the Internet.

The request for proposal (RFP) was issued for the purpose of identifying a qualified vendor to provide a comprehensive tax system based on commercial off-the-shelf (COTS) software. The use of a COTS solution is expected to reduce implementation costs and allow DOR to keep the system updated in the future with the latest functionality and technology. The CTS implementation effort is structured into three major phases that will cover approximately three years. At end of the contract, the commonwealth's goal is to be largely self-sufficient with the ability to add additional taxes in the future without vendor assistance.

The competitively-bid contract is worth $20.4 million and includes providing both the software and services for the CTS system.  The contract includes an additional $6.7 million over the next five years for annual software maintenance and support.


Last Updated 10/4/2007