the municipal secretary desktop reference manual - Southwestern ...

FACTOR:
REVENUE COLLECTION
Standards
1. During peak revenue flows, moneys are deposited on the day of receipt by the
responsible collector. In other periods revenues are to be deposited at least weekly.
Commentary
The timely deposit of monies on behalf of the municipality not only protects against the loss of funds
but maximizes the opportunity to earn interest through the investment of all available funds. The
frequency of the deposit and transfer of funds from those responsible for collections should be
stipulated by the local legislative body.
2. There are established procedures which attempt to ensure that all businesses and
individuals legally liable for payment of Act 511 taxes are on the tax rolls.
Commentary
To this end, the legislative body should mandate that, for example, the earned income tax collector
compare the list of local taxpayer accounts to the state's personal income tax records on an annual
basis. The legislative body should also institute an occupancy permit process to identify changes in
owner-occupants as well as rental unit tenants for use in the updating of taxpayer rolls. A
computerized master housing and business directory maintained by the municipality is also an
excellent means for maintaining tax rolls.
3. Real estate tax and utility rolls are audited annually to ensure accuracy and
completeness.
Commentary
All individuals liable for a tax should be on the rolls, both for the sake of fairness and to assure that
the municipality is getting the maximum revenue from its tax levies. The municipality should work
closely with the tax assessors, zoning officials, building inspectors and other appropriate officials to
provide information on new construction or renovations that should be considered for tax purposes.
The occupancy permit process is also a way to review the accuracy of utility account listings. Those
responsible for utility billing should be continuously notified of new owners or tenants.
4. The municipality has established an annual verification program to selectively audit Act
511 tax returns.
Commentary
Many non-property taxes, such as the earned income and net profits, amusement, mercantile and
business privilege, are self-assessing levies. That is, those who are liable for one or more of these
types of taxes report that fact to the imposing jurisdiction, identify the nature and scope of their
liabilities, and pay taxes based on those reported liabilities.
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