Performance Measurements What is this in a tax office? Is it a good thing or a bad thing? How are you doing “really”?. CTx – March 2013. What is the most important function you perform? Collecting the current grand list? Collecting your prior years outstanding? Keeping the taxpayers happy?.
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CTx – March 2013
What is the most important function you perform?Collecting the current grand list?Collecting your prior years outstanding?Keeping the taxpayers happy?
And the tax office is one office that we can easily show how well we are doing!
The tax/revenue office is not about collecting payments
It is about managing collections.
Many finance people come from different walks of life. What may be important to you, may not be on your finance directors/treasurers radar screen.
It is up to us to brag about our performance
nobody else will.
What factors affect these amounts?
How do you calculate your collection rate for the current year grand list?
Current Year Collections
Net Collectable Balance*
(this would be with no suspense balances taken out)
How do you calculate your collection rate for prior years?
Prior Year Collections
Net Collectable Balance*
* - Net Collectable balance is after Assessor adjustments
Total taxes collected = $5,463,200
Total net collectable = $8,001,203
5,463,200 = 68.28% collected
Is this a good collection rate? Did you have a goal you were trying to meet?
Also, you need to compare it to something.
What can we compare this to?
The collection rate from last year at the same time? And to the year before that and the year before that.
Depending on the tax software you use – you may be able to have the computer print out the % of collection throughout the year by checking a box. Ask your software vendor.
Manage your DMV Put-Ons and Take-Offs. Make sure you check your DMV exception report to make sure what you think you reported took at DMV.
You must send DMV an e-mail letting them know that you have put a put-on or take-off on Tumbleweed. The address to send your e-mail to is: [email protected]
Accounts Payable Dept – Give them a list of companies that are delinquent on there taxes and request that any future payments be given to the tax office up to the amount of taxes outstanding.
Zoning Dept – if someone who owes taxes is going to the zoning dept for approval – if they get it, they may be going for a building permit next. If you spot delinquents on zoning meetings it helps to contact the company or individual to let them know that they will have to pay their taxes prior to getting building permits.
Send delinquent statements more regularly are delinquent on there taxes and request that any future payments be given to the tax office up to the amount of taxes outstanding.
Put on the outside of the envelope “delinquent bill inside” (this may be a political decision)
Collections = Revenue per Dollar Spent
Measure Revenue vs. Staff
Collections = Revenue per Staff Member
What is the purpose of suspending accts?
So the BOF doesn’t count on getting that money in when there is little to no chance of collecting it.
To give a more accurate outstanding balance so financial decisions can be made.
How do you determine what accounts to suspense?
So you will be better able to project for the future what portion of the grand list more than likely will be uncollectable.
What has the trend been in the past?