Property tax obligations are another type of tax specific obligation type. Property tax obligations are based off the assessed value of a taxpayer's asset. Typically they are items such as real estate or automobiles but can include boats, RV's, and other high value items. They differ from filing period obligations in that it is the tax authority's responsibility to assess the value and calculate the amount of tax owed. It is then the taxpayer's responsibility to either pay or appeal the assessed value. The considerations are very similar to filing period obligations.
The obligation type must reference a defined tax type. The specific tax type will dictate the rules for that obligation.
Payment plans are often utilized for property tax obligations. Due to their infrequent assessment and billing (once or twice a year) the amount is usually large enough where a significant number of taxpayers would have difficulty paying. If payment plans are utilized then make sure to check that option under the billing tab.
Distribution code and general ledger division for the obligation directs how the money is accounted. Different taxes may be moved to different accounts. While an individual income tax may go to the general treasury fund, a fuel tax may go the highway construction fund. The distribution code will reference an algorithm that directs how the money will be accounted for.
Rates may be utilized more often for property taxes. Property taxes tend to be a locally administered tax. The breakdown of how the tax is applied to local services can be done using the rate schedule option under the rate tab.
Adjustment profile must be defined for the obligation. Adjustment profiles contain the individual listing of adjustment types that are available for that obligation type.
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