Advanced Commission Setup

Navigate: ClosedTax > Distribution > Setup > Advanced Commission Setup

Description

Use this task to configure commissions for both the aggregate commission limit as well as the Property Tax Administration Costs (PTAC), which represents the costs that the county incurs for administering secured property taxes in California.

The fee amount results in a reduction to the gross distribution with the cost spread across certain districts (TAFs) based on the calculation. The calculation of the commission pulls in original charges and applies apportionment factors to spread the 1% general tax across TAFs. The calculation of the amount of cost that is spread is reduced by the direct credits. The exception is that certain districts have their share of the costs calculated but it does not actually reduce the gross distribution. This is true for the county general fund, all schools, and ERAF.

PTAC factors in the SBE from utility, RR, Qualified, redevelopment, etc. Next, PTAC factors in ERAF, negative ERAF, and sales tax, and then apportions the total to each district. Then, the cost is determined and spread to all districts. The part of the costs that are recoverable, such as from schools, are then determined and offset by the .25 administration fee, which already reduced the distribution when it occurred. PTAC is calculated early in the year, typically in November, after the VLF, after original costs, and after swaps. It does not get applied until apportionment so that the amounts can be deducted from the districts. These early calculations are communicated to the districts as an estimate of the reduction to their apportionment.

Steps

  1. On the Set Up Advanced Commission screen, define commission limits.

      1. Click Add or Edit to define commissions.

      2. Enter a description.

      3. Make a selection from the Fee Rule and Commission Sub Code drop-down lists.

      4. Enter the Limit Amount.

      5. Optionally, select the Include in PTAC checkbox.

      6. Click Apply to save your changes.

        • Click Cancel to discard your changes.

      7. Click Save in the Command Item bar.

      8. Optionally, click Copy to next year to copy the saved setup to the next year.

      9. After creating a line item, click Edit in the Criteria column to open the Edit Advanced Commission Criteria screen. When finished, you return to this screen.

      1. On the Edit Advanced Commission Criteria screen, click Add or click Edit for an item in the Criteria List panel.

      2. Select the checkbox for one or more items in the Available Items panel to include in the criteria.

      3. Click Add Selected Item(s) to move the items to the Attached Items panel.

        • Click any items in the Attached Items panel and click Remove Selected Item(s) to move the item back to the Add Selected Item(s) panel.

      4. Click Update in the Edit Criteria panel title bar.

        • Or, click Cancel to discard your changes.

      5. Click Finish to return to the Set Up Advanced Commission screen.

        • Click Cancel to discard your changes and return to the Set Up Advanced Commission screen.

        • Click Close to end the task.

    2. OR

    In the Manual Commissions panel, click Add or Edit to open the Edit Manual Commissions screen.

    • Enter a description and make a selection from the Revenue Source and Commission sub code drop-down lists.
    • Click Finish to save your changes and return to the Set Up Advanced Commission screen.
      • Or, click Cancel to discard your changes and return to the Set Up Advanced Commission screen.

Dependencies, Prerequisites, and Setup

The following must first be set up via Tax > Distribution > Setup.

  • Distribution Rules

  • Entitled Charge Criteria Edit

  • Entitled Distribution Schedule

  • Agencies