lgc update
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LGC UPDATE. 2012 NCGFOA Summer Conference. Sharon Edmundson. 7/16/2012. ACCOUNTING IMPLICATIONS OF HB 1779. Two primary concerns Recording of revenue and cost of collections Tax collection percentage calculation for budgeting and reporting purposes. ACCOUNTING IMPLICATIONS OF HB 1779. - PowerPoint PPT PresentationTRANSCRIPT
LGC UPDATE2012 NCGFOA Summer Conference
Sharon Edmundson7/16/2012
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ACCOUNTING IMPLICATIONS OF HB 1779
• Two primary concerns
o Recording of revenue and cost of collections
o Tax collection percentage calculation for budgeting and reporting purposes
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ACCOUNTING IMPLICATIONS OF HB 1779
• Revenue and Cost of Collectionso Revenue will be received from DOR in a manner
similar to sales tax and other shared revenue monthly distributions net of cost of collections
o Units will record revenue net of costs as a property tax revenue
o No recording of costs by local unitso No recording of a levy for motor vehicle taxes, no
recording of a receivable of total levy at local levelo Will accrue a receivable at fiscal year end similar to
sales tax for the taxes that were paid to the State before year end but not yet distributed to local units
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ACCOUNTING IMPLICATIONS OF HB 1779
• G.S. 159-13(b) (6) states that “The estimated percentage of collection
of property taxes shall not be greater than the percentage of the levy
actually realized in cash as of June 30 during the preceding fiscal
year. For purposes of the calculation under this subdivision only, the
levy for the registered motor vehicle tax under Article 22A of Chapter
105 of the General Statutes shall be based on the nine‑month period
ending March 31 of the preceding fiscal year, and the collections
realized in cash with respect to this levy shall be based on the
12‑month period ending June 30 of the preceding fiscal year.”
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ACCOUNTING IMPLICATIONS OF HB 1779
• Will be asking General Assembly to revise this statute to
remove the reference to the motor vehicle tax levy
• Hopeful this can be done early in the session
• Tax collection percentage will not include motor vehicle
taxes
o Unit has no control over the collection process
o Tax collector in unit will not be charged with collecting
motor vehicle tax
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Questions?
July 16, 2012
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