Steps Set Up Tax Authority Fund Rates

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Tax > Levy Management > Setup > Tax Authorities > Search for Tax Authorities > Maintain Tax Authority > [Rates] > Set Up Tax Authority Fund Rates

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Tax > Levy Management > Tax Entity Maintenance > Tax Authorities > Search for Tax Authorities > Maintain Tax Authority >  [Rates] > Set Up Tax Authority Fund Rates

Description

Set up the rates, including credits, that determine the net rate for each fund which the selected tax authority uses. These rates are used for primary tax calculation.

SETUP: See Levy Management, Levy Management Setup and Tax Authorities for any applicable prerequisites, dependencies and setup information for this task..

Steps

  1. Select a Fund.

  2. Select the Source county, which generates charges for the fund. You can set up different rates for different counties.

  3. Select the Rate type to maintain rates for.

  4. Click Add in the TAF Rates grid to attach a new rate to the fund.

  5. Modify the information for each rate in the grid.

    • Rate value type- Identifies the value calculated by the rate. Along with the rate class, this allows for multiple rates to exist for the same rate type.

    • Rate class - Used to implement both fractional rates and flat rates for the same rate type and value type.

    • Tax rate - Enter the rate as you want it displayed in reports. If you do not want to enter the rate as the actual percentage, use the rate basis to achieve the desired calculation. For a credit rate, enter this as a negative number.

    • Rate basis - The factor by which the rate is multiplied, for example, 0.01 for rates per hundred of value.
      Example The tax rate is 30%. If the tax rate is entered as 30, the basis is 0.01. If the tax rate is entered as 0.3, the basis is 1.

    • Adjustment factor- Use if fund charges are split between more than one authority.

    • Amount type- Select the type of amount the rate calculates, such as charge or credit.

    • Charge code, charge sub code- Used to further identify charges in financial detail.

      !      IMPORTANT:To be listed here, charge codes must be associated with theTaxsystype in theCharge Typesystype category inSystype Maintenance.

    • Calculation order - The order in which a rate is applied when calculating charges for the fund. Tax rates must be applied before credit rates. Credit rates are applied in a specific order until the net rate is reduced to zero.  After the rates for the TAF are depleted, no more credits can be applied.

    • Include in net - This amount will be included when the rate for the tax authority or TAG is displayed.

      Repeat the previous applicable steps for each combination of Fund, County, and Rate type you need to set up.

  1. Click Finish to save the rate details and return to Maintain Tax Authority.

    ! IMPORTANT: After you save rates, a message will display asking if you want to overwrite the TAG TAF rates. If you have not yet entered TAG-specific TAF rates for the year in TAG-Tax Authority Associations (see Override TAF Rates for TAG), click OK to copy the authority-wide rates into the TAG rate table. Otherwise, click Cancel to avoid overwriting any TAG-specific rates you have entered.

Tips Tips

Many Aumentum processes depend on the proper setup of TAF rates, such as selecting the correct rate types, amount types, charge codes, and more. See the Dependencies section of the Tax Authorities overview topic for examples.

Make sure the proper Effective year is displayed in the sidebar. Return to Search for Tax Authorities if you need to change it.

You can enter multiple rates of the same rate type, as long as they have different rate value types.

Valuable Vocabulary

ClosedTax Credit Rate

A tax credit rate is a negative rate attached to a tax authority fund. The tax credit either reduces the effective tax rate or has the same base rate as the TAF but calculates taxes from a different basis. A credit rate must have an amount type of Credit.  To affect the net rate, the Include in Net box must be checked.

Related Topics

Counties

Tax Funds

TAG and Tax Authority Associations