the municipal secretary desktop reference manual - Southwestern ...

Estimation of Revenues
Factors to Consider
The estimate of real property tax collections will be based upon:
! Assessed value for tax purposes
! Millage rate
! Past collection experience.
Earned income tax estimate will be based on:
! Tax collector's files for the number of taxables and the collection experience
! Correlation with state income tax information
! Relationship to inflation and local economy
Per capita tax will be based on:
! Tax collector's files for the number of taxables
! Tax collector's files for collection experience
! Correlation with population growth.
Real estate transfer tax will based on:
! Review of municipal records on building permits filed
! Review of building activity
! Discussion with county recorder of deeds.
Occupation privilege tax estimate will consider:
! Tax collector's records for experience
! Local job market (available jobs).
Admissions tax estimate will consider:
! Tax Collector's files for experience
! Contact with businesses.
Licenses & Permits estimates will:
! Review each revenue source
! Establish a separate account number and budget estimate for each revenue source
! Review each permit rate for adequacy.
Intergovernmental Revenues (Grants) will:
! Review past history
! Consider nature of grants as to whether they are fixed amounts or subject to annual increases
! Depend upon nature of grant - whether it is an entitlement grant or a competitive grant.
In determining revenue estimates:
! Review and understand your recent experience
! Develop confirming sources of information, people or records, to provide further evidence on
tax receipts
! Keep track of this information in a "database" you can update throughout the year.
When estimating revenues, avoid:
! Taking last year's figure and simply adding to it
! Adjusting revenue estimates to “fit” expenditure levels.
VIII-13