Tax Rates Applicable to Governments Served by the Tax Custodial Fund

Fiscal Year $2023$

$($All amounts rounded to next higher dollar$)$

Governments$/$Funds Tax Rate $($Per $$100$

of Assessed Valuation$)$ Assessed Valuation Tax Levy

City of Smithville:

General Fund $$0\mathrm{.}55$ $$341,581,818$ $ $1,878,700$

Total city rate and levy $$0\mathrm{.}55$ $ $1,878,700$

Smithville CSD:

General Fund $$2\mathrm{.}38$ $$408,024,970$ $ $9,710,994$

Debt service fund $0\mathrm{.}12489,630$

Total CSD rate and levy $$2\mathrm{.}52$ $$10,200,624$

Smith County:

General Fund $$0\mathrm{.}64$ $$408,024,970$ $ $2,611,360$

Total county rate and levy $$0\mathrm{.}64$ $ $2,611,360$

Grand Total tax rates and levies$*$ $$3\mathrm{.}69$ $$14,690,684$

$*$ Note: Each property owner will receive a tax bill equal to the tax rates of all taxing authorities that have jurisdiction over his$/$her property times the assessed valuation of his$/$her property. Shown above are the aggregate taxes levied by each government, which are also the total amounts billed by the Tax Custodial Fund to all taxpayers in each jurisdiction.

Record the following transactions that occurred during $2023$ in the general journal of the Tax Custodial Fund.

$1.[$Para$.8-$b$-1]$ On January $2,2023,$ the city$$s tax administrator mailed annual tax bills to all property owners in the total amount of $$14,690,684($see preceding table$).$ The tax administrator maintains a detailed tax ledger to track amounts billed to and collected from each taxpayer and total amounts applicable to each fund and government.

Required: Record in the general journal the total taxes receivable, the amount due to the city and the total amount added to the net position for property tax collections for the other governments as shown in the schedule above. See the transactions illustrated in Chapter $8$ of Reck, Lowensohn, and Neely.

$2.[$Para$.8-$b$-2]$ Delinquent taxes $($including any interest and penalties assigned to the delinquent taxes$)$ were collected during the year for the taxing authorities shown below:

Governments$/$Funds: Delinquent Taxes City of Smithville General Fund $ $421,471$ Smithville CSD $780,460$ Smith County $676,990$

Total collected $$1,878,921$

Required: Record the cash collection of delinquent taxes. The Tax Custodial Fund records the total amount of delinquent taxes in the Taxes Receivable for Other Funds and Governments$$Delinquent account.

$3.[$Para$.8-$b$-3]$ The $1$ percent collection fee was assessed on the Smithville CSD and the Smith County collections made in transaction $8-$b$-2.$

Required: Calculate the $1$ percent collection fee on the amounts collected for the Smithville CSD and Smith County; the total collection fee for these two governments should be recorded as Deductions$$Administrative Fee and as a Due to Other Funds for the amount due to the City of Smithville. Round all amounts to the nearest whole dollar $(\mathrm{.}50$ is rounded up$).$ Make these entries only in the Tax Custodial Fund general journal. All cash receipts and collection fees were recorded in earlier chapters in the journals for the General Fund and governmental activities at the government$-$wide level. The collection fees, though not separately identified, were included in Revenues$$Charges for Services in the General Fund and in Program Revenues$$General Government$$ Charges for Services in governmental activities.

$4.[$Para$.8-$b$-4]$ All cash collected in paragraph $8-$b$-2$ was transferred to the city and the other two governments in the amounts calculated, adjusted for the $1$ percent collection fee deducted from cash distributions to the Smithville CSD and the Smith County. The collection fee is added to the distribution to the City of Smithville $($see Para. $8-$b$-3).$

Required: Record the payment of cash to the city, Smithville CSD$,$ and Smith County.

$5.[$Para$.8-$b$-5]$ Current taxes were collected during the year for the funds and governments shown below:

Current Taxes

Funds$/$Governments: Collected

City of Smithville General Fund $ $1,596,895$

Smithville CSD $8,670,530$

Smith County $2,219,656$

Total collected $$12,487,081$

Required: Record the collection of current taxes, record this entry only in the Tax Custodial Fund general journal.

$6.[$Para$.8-$b$-6]$ The $1$ percent collection fee was assessed on the Smithville CSD and the Smith County collections. Required: Calculate the $1$ percent collection fee on the amounts due to other governments; the total collection fee from other governments should be recorded as Deductions$$Administrative Fee and a Due to Other Funds for the amount due to the City of Smithville. $($Note: Round all amounts to the nearest whole dollar.$)$ Make these entries only in the Tax Custodial Fund general journal.

$7.[$Para$.8-$b$-7]$ All cash collected in paragraph $8-$b$-6$ was transferred to the city and the other two governments, adjusted for collection fees deducted or added. $($Note: For simplicity, Chapter $4$ of Smithville did not address this collection of fees by the custodial fund.$)$Tax Rates Applicable to Governments

Served by the Tax Custodial Fund

Fiscal Year $2023$

$($All amounts rounded to next higher dollar$)$

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