Overview Tax Rate Calculation

Navigate:ClosedTax > Levy Management > Tax Rate Calculation

ClosedNavigation Flowchart

Here is a navigation flowchart of Levy Tax Rate Calculation. Obvious actions, such as Previous and Close, are not included in the flowchart. The Common Actions links are included only if necessary to task completion.

Description

Use the tax rate calculation programs to determine the levies requested by tax authorities and calculate rates for those levies based on the values provided by the Levy Value Builds.

  • Levy Groups - Search for levy groups and edit levy definitions. Define the types of levies that will be used to enter levy requests and then to calculate tax rates.

  • Levy Maintenance - Maintain the requested and actual levies which will be used to calculate tax rates.

  • Tax Rate Calculation - Calculate tax rates from levy request amounts and the levy basis from levy value builds.

  • Tax Rates - Import - Allows importing, processing, and posting of tax rates.

Calculate tax rates from levy requests amounts and the levy basis value from levy value builds, which are based on assessment rolls. A basic tax rate per unit (of value) is calculated by dividing a levy basis value (from a levy value build) into a requested levy amount. Rate calculation is a multi-step process which uses batch processing. The final step is posting, which must be done for the rates to be available for tax calculation.

ClosedJurisdiction Specific Information

Riverside, CA

  • A workflow is initiated for each fund to calculate primary rate and to calculate variance when saving changes on the Maintain Levy Requests screen via Levy Maintenance. If the variance is outside of the expected tolerance, correspondence needs to be generated to the Tax Authorities.
Steps

  1. Select the levy to maintain and Maintain Levy Requests

  2. View existing rate calculation configurations on the Maintain Tax Rate Calculations screen.

  3. Create or edit a rate calculation configuration for a selected levy value build and one or more levies for the tax year on the Set Up Tax Rate Calculation screen.

  4. Enter tax rate modifiers on the Edit Rate Modifiers screen.

  5. Run the actual calculation through batch processing using the Calculate Tax Rates screen.

Tips Tips

Each rate calculation event is a unique combination of tax year, rate type, and levy. Although you can run multiple calculations on the same combination, only one rate calculation event can be posted.

Definitions Valuable Vocabulary

Requested Levy >ClosedThe amount of ad-valorem taxes imposed by a tax authority against properties within its jurisdiction. The levy is generally used to finance operation of the authority, to pay down debt, or to provide services.

Levy Basis Value >ClosedA taxable value, in aggregate, of all the properties against which a levy is to be applied.

Initial Tax Rate >ClosedThe raw charge per unit of the Levy Basis Value required to produce the levy. This is computed by dividing the Levy Basis Value into the Requested Levy amount.

Intermediate Tax Rate >ClosedThe rate obtained by dividing the Levy Basis Value into the Adjusted Levy amount.

Rate Modifier >ClosedA value that reduces or increases the Intermediate Tax Rate. The rate my be increased or decreased because of statutory rate limits and external revenue sources (see also Levy Modifier), or because services are not provided in certain areas that fall within the taxing authority's purview.

Actual Tax Rate >ClosedThe rate obtained by applying Rate Modifiers to the Intermediate Tax Rate.

Related Topics

Levy Maintenance

Levy Groups

Levy Value Build

Rate Calculation by Tax Authority Group Report

Rate Calculation by Tax Authority Report

Prerequisites
Levy Management
Configuration

The variance tolerance must be defined for tax rate calculation on the Maintain Levy Request screen.

  1. Go to Configuration > Application Settings > Maintain Application Settings.

  2. Select the setting type of Effective Date and the filter by module of Tax Levy Management.

  3. Click Edit on the Tax Rate Variance Tolerance application setting and set the tolerance as applicable.

Dependencies

If you are using calculated rates, rather than entering rates manually for tax authority funds, rates must be calculated prior to Tax Roll Processing.