All rate factors share a common structure as illustrated below:
The above example shows a standard rate factor made up of the following tables:
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A rate factor contains descriptive information and attributes that control how the rate factor may be used in the system.
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All rate factors have the capability of having different values depending on some characteristic of the location. For example, a rate factor used to levy a city tax would have a different tax rate depending on the city in which the taxpayer resides. A rate factor characteristic must exist for every city with a tax (cities without a tax will not be linked to the city tax rate factor). At billing time, if the system cannot find a rate factor characteristic that corresponds with the taxpayer's city of residence, the charge will be skipped.
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And finally, each rate factor characteristic may have many rate factor values over time. To continue with our city tax example, each city with a tax can have different tax rates over time. There are different ways in which a rate factor's values may be defined:
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For rate factors whose values are applicable to many taxpayers where only one value is effective on a given date, e.g., a city tax, the values are defined using rate factor values. Refer to Defining Rate Factor Values for more information.
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For rate factors whose values are applicable to many taxpayers where more than one value is effective on a given date.
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For rate factors whose value differs per taxpayer, the value is defined in the taxpayer's obligation. Refer to Obligation - Contract Value for more information about rate factors in contract terms.