Depreciation Schedules Explained

The sigerTax system allows you to store and track the Depreciation Schedules used by Assessors to determine the value of an asset.  These schedules can be "Percent-Good" tables, "Trend" factors, or any combination used to adjust an asset's value.  In the sigerTax system, Depreciation Schedules can be found in the Annual Information tab of the Assessor Screen.

Standard state-wide Deprecation Schedules are linked to the Assessor State Default record. When a new Assessor is added to the system, state Depreciation Schedules are added automatically with a blue background to differentiate the state schedules from the Assessor-Specific schedules. More schedules can be added to the specific assessor by right-clicking on the schedule list and selecting <Add Schedule>. A New Depreciation Schedule form will open. It is also possible to copy schedules from a spreadsheet into the New Depreciation Schedule form. 

Once the Depreciation Schedules are entered, you can assign Asset Classes to them on the Depreciation Schedules tab or you can assign Depreciation Schedules to Asset Classes on the Asset Classes Tab.  Again, if these assignments are made on the state-level Assessor, they will be passed down to all of the Assessors in the state.  If you make these assignments on a specific Assessor, they will override any state-level assignments.  Assets that are loaded onto returns for these Assessors will have their reported values adjusted automatically, based on the Depreciation Schedules, when you assign an asset class and a location during the load process.  You can then override these adjustments if necessary from the Load Analysis form, or on a particular asset individually.  

Information Requests

When you ask a client for information, most of the time you ask for a standard set of information and documents, while other times you may need to adjust that list for a unique property or a specific property type. Sometimes you receive what you need in its entirety, and sometimes you receive only parts of what you need. Keeping track of which information you have requested, and what you have received can become frustrating and difficult if it is not organized in a place where you can always find it.  

We designed Information Requests to systematically address this problem. Select what information items you need from the client and create a Request.  You can even create templates called Information Request Classes for the items that always need to be requested for a specific property type, type of representation, or any other unique circumstance to allow for quick request creations in the future. 

As the requested items come in, you can track each line-item individually and have an at-a-glance picture of what is missing.  You can even re-request items individually or as a group if necessary.

Please contact us if you would like help setting up Information Requests for your company. 

Jurisdiction Reduction List

The Jurisdiction Reduction List is a new tab on the Jurisdiction screen that allows you to store the exemptions and abatements, which we call Reductions in the sigerTax system, granted by the Jurisdiction.  The inclusion of reductions at the Jurisdiction level provides a place to enter the available reductions and their details once, rather than having to search the internet for the correct reduction amount every time you add a reduction to a parcel.

The Jurisdiction Reduction List is also used at the Parcel Level to aid in the addition of reductions to the Parcel.  You can choose one of the available reductions from the list, or choose ‘Other’ to add your own reduction to the parcel.

Jurisdiction Reduction List in Action

You can add as many reductions to the jurisdiction as you like.  Both fixed Amounts and/or Percentages can be included on the Jurisdiction Reduction.  You can also indicate if the reduction type includes a cap.  For your convenience, you can specify the RE/PP classification and the Property type of the reduction.  These fields are optional, and the RE/PP will default to ‘Real and Personal’.

Example 1:

Dallas ISD Homestead Exemption = 15,000 + 10%.

Both the percent and the amount are included on the Homestead reduction for Dallas ISD.

Example 2:

Dallas County Over 65 Exemption = 69,000 + 20%.  It is also capped the year a person turns 65.

The Jurisdiction Reduction includes the amount, the percent and the tax cap.

Jurisdiction Reduction List Automates Parcel Reduction Addition

Once reductions are added to the Jurisdictions, they will appear on the Parcel Reductions Add list when adding a new reduction to the Parcel.  This list is comprised of the available reductions for the jurisdictions which are linked to the Parcel’s tax records, filtered by the RE/PP classification and property types if specified on the reduction.  Reductions of the same type with the same fixed amount and the same percentage will appear only once on the list specifying the jurisdictions offering that reduction.

Example:

A parcel in Dallas has the Dallas County, City, ISD, College District, and Parkland Hospital District jurisdictions linked to it.  The reductions added to the jurisdictions are:

                Dallas County:

                Homestead = 20%

                Over 65 = homestead of 20% + 69,000

                Dallas City:

                Homestead = 20%

                Over 65 = homestead of 20% + 64,000

                Dallas ISD:

                Homestead = 10% + 15,000

                Over 65 = homestead of (10% +15,000) + 45,000

                Dallas County College District:

                Homestead = 20%

                Over 65 = homestead of 20% + 50,000

                Parkland Hospital District:

                Homestead = 20%

                Over 65 = homestead of 20% + 69,000

The Parcel Reductions Add list will include these reductions, combining the reductions of the same type and with the same fixed amount and percentage into a single line item.

For more information regarding the Jurisdiction Reduction list and to schedule an update, please contact sigercon.

Tax Calculation Methods

The sigerTax Property Tax system, in addition to the standard tax calculation method that has always been employed in the system, is now able to support fixed rates, fixed taxes, fixed values, capped values, capped rates, and capped taxes. 

• A fixed rate will be the tax rate that will be used to calculate the tax amount.
• A fixed value is the taxable value that will be used to calculate the tax amount.
• A fixed tax is the tax amount designated for the parcel.
• A capped value puts a ceiling on the amount of taxable value.
• A capped rate likewise puts a ceiling on the rate to be used in the tax calculations.
• A capped tax is a ceiling on the amount of taxes an account can be charged.

A tax cap occurs when a jurisdiction designates that an account has a cap or ceiling on the amount of taxes that will be paid on that account for a given tax year.  For example, Texas law states school district taxes must be capped at the current taxes of the year a person turns 65.  By including the tax cap on the tax record within sigerTax, you will no longer have to manually manipulate the tax amount on the tax record to accurately reflect the cap.  The system will automatically consider the cap in its calculations.

The standard calculation for value based taxes is:

Tax Amount = Taxable Value x Tax Rate

When a tax is capped, the system considers the cap when determining the account’s actual tax amount.

If the calculated tax amount (tax rate times the taxable value) is less than the capped tax amount, the actual tax amount is the calculated tax that is the tax rate times the taxable value.

Example:

• Capped tax amount: $2,709.73.
• A taxable value of $152,400 and a current tax rate of 1.354864
• The calculated tax amount would be $2,064.81.
• The actual tax amount would be the lesser of the two amounts or $2,064.81.

If the calculated tax amount is more than the capped amount, the system will use the capped amount as the actual tax amount.

Example:

• Capped amount is $2,709.73.
• A taxable value of 152,400 and a current tax rate of 1.875423
• The calculated tax amount would be $2,858.15.
• The actual tax amount would be the lesser of the two amounts, or $2,709.73.

In addition to specifying the tax calculation method, you can now include a start year and an end year related to the tax calculation method.  These could be used in conjunction with various tax abatement agreements that have pre-determined expiration dates.  The years are referenced when the parcel is rolled forward or back.  If the system year into which the parcel is rolled is greater than the system year specified by the end year, the tax calculations will reset to standard and the cap amount removed.  It is a good idea to include a start year of possible for reference purposes.

For your convenience, the method of tax calculation associated with a given tax record is now included on the Parcel Tax Record list.

For more information regarding Tax Calculations or to schedule an update, please contact sigercon.

Update of the Parcel Value Reduction Calculations

Depending on your property tax portfolio, Exemptions and Abatements can be an important part of your valuation process.  They can also be confusing, as some jurisdictions give a fixed reduction for a particular exemption category, while others give a percentage off, and some even give a combination of the two.  Tracked as “Reductions” in the sigerTax system, these calculations are no longer a hassle.

We are excited to announce that sigerTax now supports the automatic calculation of reductions whether the exemption is a percentage of the assessed value or a fixed amount.  By including the exemption, or reduction, in the system, you no longer need to manually override the taxable value in order to calculate the correct tax amounts.

 The system has always calculated the taxable value by subtracting the reduction from the assessed value.  Now it will also calculate the reduction amount for each of your values.  With the Reduction Calculations, the system will automatically and correctly calculate both your current and beginning taxable values.  It will also automatically adjust the current amount of the reduction as the parcel’s value changes, thus calculating your taxes and savings correctly.

The sigerTax system supports three methods for calculating the reduction.

Percent Equation: To find the reduction amount with a fixed percent, the system uses this equation:

Reduction = Assessed Value x (Percent/100)

Example:  The Dallas County Homestead Exemption is 20% off of the assessed value.  For an assessed value of $250,000, the equation is:

Reduction = 250,000 x (20/100)          or           50,000.

Amount Equation: To find the reduction amount with an amount off, the system uses this equation:

Reduction = Amount Off

Example:  The City of Dallas Over 65 exemption is $64,000 off the assessed value.  Thus the equation would be:

Reduction = 64,000

 This method functions identically as inputting the amount in the Requested, Beginning and Final amount fields.  However, by putting the amount in the Amount Off field, the system will automatically update all three fields for you, saving you time.

Amount and Percent Equation: To find the reduction amount with a percent and an amount off, the system uses this equation:

Reduction = (Assessed Value x (Percent/100)) + Amount Off

Example: The Dallas ISD Homestead Exemption is 15,000 + 10% off the assessed value.  With an assessed value of $250,000, the equation is:

Reduction = (250,000 x (10/100)) + 15,000     or           40,000. 

If your assessed value were to change from 250,000 to 236,000, the system will automatically calculate your current value reduction amounts using the new value.  The beginning reduction amounts would stay at 50,000, 64,000, and 40,000 respectively.  The recalculated reduction amounts would be as follows:

Percent:

Reduction = 236,000 x (20/100)          or           47,200

Amount:

Reduction = 64,000

Amount and Percent:

Reduction = (236,000 x (10/100)) + 15,000     or           38,600

For your convenience, the reductions are marked on the Parcel Tax Record List, with the code of the reduction next to the jurisdiction name.  For example, Dallas County would have an H next to it, because it has a Homestead Exemption.

On the Tax Record itself, the type, status, beginning amount and current amount of the reduction can be found in red under the Taxable Value fields.

 

For more information regarding reductions and to schedule an update, please contact sigercon.

Value Reductions - Exemptions , Abatements , Etc.

In addition to tracking values of parcels, the sigerTax system allows you to track the various types of reductions that apply to those values.  The purpose of a reduction is to reduce, or increase in the case of a penalty, the taxable value for one or more of the associated records. Multiple exemptions and the tax records affected by those exemptions can be tracked with the Reduction feature independently from the Parcel's values.

To add a new reduction, use the Reductions section of the Values tab, and select <Add Reductions> from the popup menu.  A New Reduction form will open.  Fill in the appropriate information, making sure to include the type, status, requested reduction amount and the beginning reduction amount. It is important to note that the amount fields refer to the amount of the reduction itself, not the reduced value of the parcel.  Select the affected tax records and save the reduction.  The selected Tax Record's taxable value will be adjusted accordingly.  

The difference between the Beginning Amount of the reduction and the Final Amount will be included in the Parcel's Tax Savings.  If you do not want the Reduction to be included with the Tax Savings, make the Beginning Amount the same as the Final Amount.

The Requested Amount is used as the Reduction until the status is accepted.  Once the status is accepted, the Final Amount will be used. If the reduction is denied, none of the amounts will be used. 

 A Parcel can have multiple reductions of various types. For example, a single Parcel could have a Homestead exemption for each of its jurisdictions and a Disability exemption for one of its jurisdictions. You can add as many reductions as you need, and additional reduction types can easily be added by the system administration.  Please contact the sigercon office for more information.

Client Web Access

Could you use more time in the day?  Our newest tool, Client Web Access, allows you to save time by giving your clients read-only access to their information via the web.  Clients can now run reports, check statuses and values, export to Excel, and even view documents 24/7.  The tool uses an always-on, read-only web portal that uses unique usernames and passwords to allow access to their specific system data.    Impress your clients with the sleek new interface.  Cut down on emails back and forth.  Check out the Demo Access account:

http://web.sigercon.com/demo
username: sigercon
password: password

for a first-hand look at the ins and outs of the website.  Please contact sigercon for more information on creating your own Client Website.

The Client Access website allows clients to view the information regarding properties, parcels, and tax bills.  It organizes the information into the familiar search results list format, which then links to individual detail pages.   The default main page is a list of the client’s properties with summary information.  As in the sigerTax system, it is possible to filter the Search lists to include only the necessary results.  You can also access previous years by clicking on the year buttons.  Clicking a property name will open the property’s detail page. 

The Property Webpage

Each Property webpage includes current year information as well as historical information for as many years as are available.

The information on the Property webpage includes:

• Information: includes the address, the square footage of the land and improvements, etc
• Priority Documents: a list of documents you have designated as the most important or most recent.
• Phots: any pictures of the property linked in the sigerTax system, including a map of the addess linked to Google Maps.
• Values: a list of values for the property.
• Taxes: a list of taxes for the property.  This includes the jurisdictions assigned to the property. 
• Accounts: a list of parcels assigned to the property.  These parcels can be viewed by clicking on the Account number.
• All Documents: a list of all documents assigned to the property, including the Priority Documents.
• Notes: a list of notes regarding the property.

The Documents and Notes within the sigerTax system have flags to indicate whether they should be “viewable by client.” This flag is checked before the records are displayed.

The Parcel Webpage

Parcels can also be accessed from the Client Website.  They can be found on the Property page or in the   Parcel Search.  Clicking on the Account number will open the Parcel Webpage.  You can also access the assigned Property from the Parcel Search by clicking on the Property name. The information on the parcel page is similar to the property page.

The Tax Bill Webpage 

The Tax Bill list allows clients to see the all the tax bills for their parcels.  Click on the Statement in the Tax Bill Search to view the Tax Bill.  You can also access the parcel linked to the tax bill from the Tax Bill Search.

The information on the Tax Bill Webpage includes:

• Information: includes the amount, the due date, etc.
• Parcel Detail: includes the parcel account number, the assessor, and the property.
• Bill Detail: includes the juridisctions, the taxable value, and the tax rate.

Invoice Basics

You don't work for free.  In addition to all the other tasks that the sigerTax property tax software makes more efficient, sigerTax can help with invoicing your customers as well. 

Typically you would create an invoice for a client, add line-items to the invoice, and mail it out.  This always leaves the questions "Has everything been invoiced?  Did I forget anything?"  Through sigerTax, the line items (Invoice Items) are created as individual pieces which are then used to calculate and create invoices.  This allows you to view the possible billable items and then decide what to include on your invoices.  We also offer an even more powerful tool to be used in the creation of Invoice Items - Invoice Terms. 

In addition to creating the invoice, the software also allows you to create an invoice template (Invoice Terms) for each client which includes line items which define the template (Invoice Term Items) and a list of properties the template will handle.  As properties are added to this list, Invoice Items are created automatically.  These change status from pending to billable as the billing event defined on the template occurs.  Flat Fee billing events are usually a date, while Contingency billing events are usually the value settlement.  You can process these invoice items as often as you like, which groups them on invoices according to the terms (either individually, per property, or all on one invoice per client). 

There are three major components of the sigerTax Invoicing method:

•          Invoice Items
•          Invoices
•          Invoice Terms

While the information below is a brief overview of each section, full descriptions can be found in the sigerTax Help.

Invoice Items

The Invoice Item is an individual unit that is billable on an invoice.  It can be as specific as a line item for one level of one parcel’s appeal, or as general as the flat fee for working an entire portfolio. Invoice Items can be found with shortcuts at the Client level, the Client Group level, and the Property level or through the Invoice Item Search.  Invoice Items can also be created automatically through Invoice Terms, which are discussed below.

The Invoice Item screen includes the basic information that the system needs to calculate the invoice amount (e.g. Contingency Rate, or Flat Fee Amount).  It also includes optional, more complex settings that you can use to adjust how the item is calculated (e.g. applying caps, adjusting for prior billing, etc.) and/or how the information is displayed on the invoice (e.g. changing the value labels, or billing terms).  In addition, there are settings that allow you to decide how to group the invoice items on the created invoices, either individually or by client.

You can use the shortcut buttons on the invoice item to invoice the item (if it is billable), calculate an invoice’s amount based on its type, or force the contingency amount based on the current savings (rather than waiting for a settled value). 

Invoices

The Invoice is an itemized bill of services rendered to the Client.  Within sigerTax Invoices are the record that groups and summarizes Invoice Items.    Invoices can be found at the Client level, the Client Group level or through the Invoice Search.

When you create an Invoice, the information included on the Invoice Items is calculated, and most fields can fill in automatically if utilizing the Invoice Term feature.  From here, you can print the invoice out and it is ready to be sent.  The Invoice also includes the default addressee as well as a list of Invoice Items that are linked to the invoice itself.  You can also attach external documents to the invoice, and even include memo text on the printed invoice. 

 Invoice Terms

An Invoice Term is a template from which invoice items can be created automatically for a client.  The Invoice Terms are not a required piece, but can save a great deal of time when creating invoice items with identical parameters.  For example, a client may have one contingency percentage for all of their real estate properties and one for their personal property properties.  By creating an Invoice Term for the client for each type of property, you can automatically generate invoice items for each type of property with the correct contingency amount, avoiding manual entry of each one.  

The information on the Invoice Term is basic, focusing on the outline of the term itself.  It includes the name of the term and states to which the term applies as well as contract information and notes.  The Invoice Term Items define the actual behavior for each invoice type, while the Property List defines which properties are included. 

 Invoice Term Items

As an Invoice Item relates to the larger Invoice, the Invoice Term Item has the same relationship with the Invoice Term.  The choices made on the Invoice Term Item determine what is set on the automatically generated Invoice Item.  These are the same choices detailed above, but will affect any invoice item generated from the template, rather than any one specific invoice item.  It is important to create and save Invoice Term Items on the Invoice Term before adding properties to the property list, as that addition is what automatically generates the Invoice Items. 

In addition to all of the features above, you can also use the Invoicing feature to simply calculate the correct invoice amounts, and then upload that information to QuickBooks.  We are happy to help you implement this feature that has saved our clients so much time and effort over the years.  Even if you would like to just discuss your current invoicing process and best practices, we would be happy to help with that as well.

Featured Report: Tax Bill Log

Which Tax Bills are due?  When are the Tax Bills due?  Rather than searching for these answers client by client, the Tax Bill Log enables you to quickly generate a report of every tax bill within the system matching the designated criteria.  This report is available through the System Reports menu, which is accessible at any level of the system.  You can use the drop-down options and checkboxes like the ones described below to narrow down the tax bills included on the report. Full descriptions of the report's criteria options are available in the sigerTax Help.

• Due dates: sets the parameters for the tax bill dates.  For example, if the dates are set at 8/1/2012 and 9/1/2012, the report will include any tax bill due between those dates.
•  Types: the type criteria allow you to decide which categories of tax bills you wish to include on the report.  For example, you can include only 'Pending' bills or only 'Refund' bills. 
• Information: the information criteria allow you to designate how much detail to include on the report.  For example, you could select to only include the tax bills for the state of Texas, or to use the owner name of the parcels, rather than the client name.

The Tax Bill Log report will open after the [Preview] button is clicked on the Tax Bill Log screen.  The report includes the requested tax bill information such as the account number of the parcel, the due date, and the status of the tax bill, to name a few.  

SigerTax Goes Global

We at sigercon are continuously working to improve the sigerTax property tax software system to better meet the needs and requests of our clients. One of our newest additions is the support of international properties in the sigerTax system. 

When adding data, the system will now include a country field, defaulting to the country selected as the current user's country in the Contact information. For all current users, the default is set to the "U.S.".  An address cannot be added without selecting a country for the address. If a different country is selected, the address and phone number layouts will change to match the address layouts of that country. The units of measure on the property and parcel will also change from US Standard to the Metric system, and the currency symbol will become that of the country selected. 

Currently the system supports the United States and Canada with the ability to add more countries as requested.