SmartFusion Modules -> Tax Collection

In most bill types other than intangibles the basic calculation for determining a bill amount is as follows.

Levies - Exemptions + Fixed Services

Levies To calculate the levies for a bill you need to get the assessment value for the property. The different bill types that use levies calculate their assessment value in different ways that will be discussed below. Once you have your assessment value you that value and multiply it by the millages for the tax year levy and come up with an amount. You then divide that by the per unit value set up in system settings. If the bill has been prorated you would take this value and then multiply it by the percent the bill is prorated to.

Exemptions If there is an eligible exemption on a bill that does relate to a levy you are being charged for you will have exemption amounts that will lower the overall amount of tax owed. Exemption amounts are determined in a number of different ways depending on the type. These methods are covered in Tax Exemption Schedule Calculations.

Fixed Services There are fixed services tied to a bill. These just have a flat amount and a quantity. You calculate your total by multiplying the 2 values.

Bill Types

Heavy Equipment

The assessment value of a heavy vehicles takes a little calculation. You start with the sales prices for the vehicle as a base for the calculations. You then have to multiply this value by the Tax Value percent in the Tax Year associated with the bill and is available only when the Tax Value Percentage option is checked in the Tax Collection system file. Once you have this value you have to determine how many months of the year this equipment was owned for by subtracting the month of the invoice date from 12. You then take the adjusted sales price and multiply it by the number of months / 12 and then take that and multiply it by .3333. This is your assessment amount

Example

Sale Price: $20,000
Invoice Date: 6/12/15
Tax Value Percentage: 40%

20000 * .4 = 8000

Months in a year - Month of invoice date
12 - 6 = 6

Number of months / months in a year
6 / 12 = .5

8000 * .5 = 4000

4000 * .3333 = 1333.20

Assessment Value is 1333 (rounded to nearest dollar)

The assessment value is then applied against the millage of the associated levies. Minimum calculated charge of the levies is $100.00

Calculation of the late filing /assessment penalty is as follows

• It is only calculated if the date filed after the last day of the next month of the invoice date. So a bill with an invoice date of 10/10/2019 will not get an assessment penalty until after 11/30/2019 It is 10% of the calculated charges.

Intangibles

To calculate an intangibles bill you take the face value rounded up always to the nearest 500) of the property and multiply it against the Proportionate Share Percent to get the assessed value which you then divide by 500 and then multiply it by 1.5

There is a maximum bill amount of $25,000 for intangibles.

Example

Intangible Face Value: $19,500.01 Proportionate Share Percent: 90

Round UP always to next 500 so value to use will be 20,000

Calculate assessment amount 20,000 * 90/100 = 18000

18,000 / 500 = 36 36 * 1.5 = 54

54 < 25,000 max bill so 54

Bill Amount $54 which is then split among the percentage of each levy millage compared to the total of them.

Merchant

The assessment value of a merchant property is the sum of the assessment details for the property

Mobile Home

The assessment value of a mobile home is a little more complicated. If a fair market value adjustment exists then this is used to calculate the assessment amount. If there is none then you take the sum of the fair market value and the fair market value additions. You take the amount you determine needs to be used and multiply by the Tax Value percent setup in the Tax Year associated with the bill and is available only when the Tax Value Percentage option is checked in the Tax Collection system file to get the assessment value to be used when calculating bill charges

Example 1

FMV Adjustment 20000
FMV 10000
FMV Additions 5000
Tax Value Percentage: 40%

Assessment Value is 20000 * .4 = 8000

Example 2

FMV Adjustment 0
FMV 10000
FMV Additions 5000

Assessment Value is 10000 + 5000 = 15000 * .4 = 6000

Personal Property

The assessment value of a real estate property is the sum of the assessment details for the property

Real Estate

The assessment value of a real estate property is the sum of the assessment details for the property

Timber

The assessment value of a timber property is the price paid which is then multiplied by the milage/per unit.

Calculation of the late filing / assessment penalty is as follows

The date used as starting point is the Date of Sale field/value.

• Lump Sum

  Owner has 5 business days to file. If they do not file it is a 1% penalty on the tax for each month up to 12 months. This includes partial months so in reality once the month starts penalty is applied. After 12 months it is a one charge of 50% (prior 12 not calculated)

• Unit Price

  Seller must file within 60 days based after the end of the quarter based on the year of the sale date. If they do not file it is a 1% penalty on the tax for each month up to 12 months. This includes partial months so in reality once the month starts penalty is applied. After 12 months it is a one charge of 50% (prior 12 not calculated)

• Owner Harvest

  Seller must file within 45 days based after the end of the quarter based on the year of the sale date. If they do not file it is a 1% penalty on the tax for each month up to 12 months. This includes partial months so in reality once the month starts penalty is applied. After 12 months it is a one charge of 50% (prior 12 not calculated)

Utility

The assessment value of a utility property is the sum of the assessment details for the property