How do I set up tax codes?

Add, edit, or delete a tax code.

A tax code calculates tax based on an amount, amount and rate, rate, or tax rate. Example: 59-2-101, Short Title; 59-2-103, Rate of Assessment of Property – Residential Property; and so on. You need to set up a tax code for each of the tax codes that will be used to calculate property tax on real property and personal property.

Contents

Add a tax code
Change a tax code
Delete a tax code
Options

Add a tax code

Create a new record for a tax code.

Do this...

1. Open Connect Property Tax Collection > Organization > Tax Codes.

2. Click New (CTRL+N).

3. Fill in the form. Use the sections in this help topic for help filling in each field.

4. Click Save (CTRL+S).

The tax code is saved.

Change a tax code

Edit the properties assigned to a tax code.

Do this...

1. Open Connect Property Tax Collection > Organization > Tax Codes.

2. Look up the tax code. Press Enter.

3. Edit the tax code.

4. Click Save (CTRL+S).

The tax code is updated.

Delete a tax code

You cannot remove a tax code when related transactions exist.

Do this...

1. Open Connect Property Tax Collection > Organization > Tax Codes.

2. Look up the tax code. Press Enter.

3. Click Delete (CTRL+D).

The tax code is deleted.

Options

Allow on personal property/real property

Many tax codes apply to both personal property and real property, but some tax codes only apply to one or the other. You can set up these options to specify when a tax code should, or should not, be available for selection.

Does this tax code apply to personal property?

Yes, this tax code applies to personal property. Click to select Allow on Personal Property.
No, this tax code does not apply to personal property. Clear the Allow on Personal Property checkbox.

Do this tax code apply to real property?

Yes, this tax code applies to real property. Click to select Allow on Real Property.
No, this tax code does not apply to real property. Clear the Allow on Real Property checkbox.

Description and Abbreviated description

Each tax code is assigned to a designated code. The code is usually made up of a combination of numbers and letters. Example: 59-2-101.

What is the tax code description?

Use the Description field to enter the series of numbers and/or letters that make up a tax code (40 characters or less).

What is the abbreviated description for the tax code?

Use the Abbreviated Description field to enter a shorter description (10 characters or less). When space is limited, on reports or in Inquiry for example, the system will use this shorter description instead.

Tax category

A tax categories to create distinct classes of tax codes.

Which tax category do you wish to assign to the tax code?

I want to select a tax category. Use the Tax Category field to select a tax category.
I need to add a tax category. Use Organization > Tax Category, then click New (CTRL+N) to add the new record.

Tax method, Rate, Amount, and Modifier

The tax method is the way which an amount is calculated. For example, Jane sets up a tax code that charges a flat amount. In this case, Jane sets the tax method to amount, which allows her to enter a dollar amount in the Amount field.

Which tax method will you use to calculate this tax code?

Use an amount. Use Tax Method field to select Amount. Then, enter a dollar amount in the Amount field ($00.00). Tax Code = Amount
Use a rate and add an amount. Use the Tax Method field to select Amount and Rate. Enter a number in the Rate field; record up to six decimal places (00.000000). Then, enter a dollar amount in the Amount field. Tax Code = (X x Rate) + Amount

Use a rate. Use the Tax Method field to select Rate. Enter a number in the Rate field; record up to six decimal places (00.000000). Tax Code = Rate
Use a modifier. Use the Tax Method field to select Modifier. Enter a percentage in the Modifier field; record up to six decimal places (00.000000). Tax Code = Variable − (Variable x Modifier)