Rate factor value proration behaves the same way any time a rate factor value changes within a calculation period. This could be due to a change in a tax rate, a contract rider becoming effective, a tax exemption expiring, etc.
Multiple bill calculation lines are generated for a given rate component when a proratable rate factor value changes during the calculation period.
Example:
If the state tax rate changes from 6% to 6.5% on April 16, and the calculation period is April 1 to April 30.
The first RF value factor period April 1 to April 15, so RF value period factor is 0.5.
The value used in the first bill calculation line for state tax is 6% x 0.5 = 3%.
The second rate factor value period is April 16 to April 30, so the RF value period factor is 0.5.
The value used in the second bill calculation line for state tax is 6.5% x 0.5 = 3.25%.
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