Sales Tax On Assessments [U0725]
Contents
Introduction
The Sales Tax on Assessments Update [U0725] governs charging sales tax on assessments/recurring charges. This update is only available if the Sales Tax on Assessments Module is purchased. The user can specify whether sales tax is to be charged on any given assessment or recurring charge, by state and portfolio.
The user maintains a table through [U0725] that designates whether a given state requires that sales tax be charged on specific assessments/recurring charges. For added flexibility, LeasePak stores this information at the state level within portfolio.
Once this table is set up, all updates within LeasePak which result in placing an assessment or recurring charge on an invoice read the table and determine whether to charge sales tax on the assessment or recurring charge. The tax to be charged is designated by the tax code on the asset record. However, if the tax code is NOUT or NOPF, the system functions as if the code is ALL. For more explanation of asset-level tax codes, refer to Add Asset [U0101] or the Application Asset tabs [U0801].
If sales tax is to be charged, the tax amount will be calculated and accumulated into the sales tax bucket for the invoice and a flag will be set to indicate that sales tax was charged on the assessment/recurring charge.
If the user is changing an assessed amount on an existing invoice, the system will only charge sales tax on the new amount if tax was charged on the original assessed amount on that invoice.
Sales tax will never be charged on property tax or FHUT for off-lease assets.
If an assessment that is normally taxable in a given portfolio/state is determined to be non-taxable due to the exempt status of the asset, then nontaxable gross receipts will be reported. If an assessment is not normally taxable in a given portfolio/state, then nontaxable gross receipts will not be reported.
The following updates in LeasePak are affected by this module:
- Book Lease [U0101]
- Assessment and Assessment Waiver [U0105]
- Group Property Tax Assessment [U0106]
- Payment Extension and Payment Extension Reversal [U0107]
- Lease Extension and Lease Extension Reversal [U0108]
- Rebook [U0116]
- Payment Due Day Change [U0118]
- Cycle Accruals and Reverse Accruals [U0301]
- End
of Period [EOP]
Note: Sales tax on assessments must not be set up in a portfolio that has a recurring charge type T(tax). Refer to Assessment Customization option of the Portfolio update [U0212] for information on recurring charge type T.
This screen is used to input the portfolio and state to be added, modified or deleted.
Field Descriptions
- PORTFOLIO
Enter the portfolio code to add or modify. Use Help to see a list of existing portfolio codes. A message will appear, and additions or changes will not be allowed, if the portfolio has any type T recurring charges, as established in the RECURRING CHARGES screen of the Assessment Customization option of Portfolio [U0212].
- STATE
Enter the state code to add or modify. Use Help to see a list of existing state codes. The state must currently exist in the RLO (Location) file. Upon entry of a valid code, all assessments and recurring charges that are being used in that portfolio are displayed in the scrolled area. In add mode, all switches are set to Yes. The user may then change any assessment or recurring charge to No if sales tax is not to be charged on that assessment or recurring charge.
Add/Change Sales Tax On Assessments
This screen is used to enter or change the switches for whether to charge sales tax on the individual assessments and recurring charges.
Field Descriptions
- ASSESSMENTS
(scrolled area)
The assessment names are displayed. If the Name Assessments module is purchased, customized assessment names will be displayed.
- SALES
TAX (Y/N) (scrolled area)
Check box if sales tax is to be charged on this assessment in this portfolio/state. Clear box if sales tax is not to be charged.Note: When adding more than one assessment, assessment boxes must be checked.
Delete Sales Tax On Assessments
From the Sales Tax on Assessments menu, the Delete button removes the selected record.
This message is used to verify that the correct Portfolio and State to be deleted is correct. Select YES to delete the sales tax on assessment information for this portfolio/state. Select NO for the record not to be deleted.
LeasePak always charges sales tax on assessments 'Opening Commission' and 'Registration Fee'; these assessments do not appear on this list.
LeasePak Documentation Suite
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