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HomeMy WebLinkAboutUtility Sales Tax Reporting Instructions Utility Sales Tax Reporting Utility Sales Tax is due each month by the 20th for the prior month. To begin you will need to open Incode V.X. *Select Reporting from the locked tab at the top of the screen *On the right side of the screen under Categories you will need to select Utility Billing. The saved report Monthly Transaction Report should be highlighted. Double Click the blue line to open the report criteria *Click on the down arrow by Options, click on Open and select the report titled Water. *Change the dates to the 1st and last day of the previous month and the rest of the information will auto populate. *When the report comes up, you will not need to print the whole report, only the pages that contain Total by Revenue Class and Revenue Code by Bill Cycle. *On the last page of the report, you will need to do some figures based on the tax-exempt codes. These are found in the Total by Revenue Class. There are different groups that are located on the back of the yellow card in the State Sales Tax folder. Once you have located each one, add the like codes together and write on the bottom of the last page for later. *Take the Revenue Code by Bill Cycle, found on the last page or two of the report you printed, and add the amounts across the line for County, State and City. There are 2 County and 2 State but only one City. Add the 2 State together and divide the total by 6.5%. (This will be a large number) Add the 2 County lines together and divide by 1.5% and the City will be divided by 2%. Each of these are divided by the amount of sales tax to be collected at the time so could change if there is a tax increase or decrease. *Once you have these figures together, open the file Sales Tax Report Water. It is located on the T: Drive. Clear out some of the contents of last month’s report, but don’t delete it so that your formulas will still be active. (For help, at the bottom of the Excel page, click on page 2 named Example. This will have highlighted where the info comes from and where it should go.) It is best to start at the bottom left and enter in the Tax-Exempt amounts you figured from the yellow card groups into lines 39-42 C. Also, while you are at the bottom, there is a list of Pre-Payments in the yellow folder that will automatically be deducted from our account twice each month. One on the 12th and one on the 24th. Enter in the amount of this month’s prepayment and it should automatically deduct it from the total. *No go back to the top of the spreadsheet. To get the number for line 1 you will need back in to the number. Take the Taxable sales you calculated from the Revenue Code Bill Cycles and add in the amount of Tax Exempt from line 43 to enter in line 1. The amount in line 2 will auto populate from line 43 and the Taxable Sales tax will auto figure to the amount of actual amount collected. As long as you pay by the 20th of each month, you are allowed to take a 2% discount. The discount is set to automatically figure. *For lines 18 and 19, you will enter the amount from the Revenue Code Bill Cycle number for each County and City. These will auto figure and calculate the discount for you. To check your figures, the total from line 4 (gross tax due), line 18 column F and line 19 column F should be the total for the Gross. The total of line 5 (discount) and 18 & 19 G should equal the Discount. The Gross less the discount and two prepayments should give you the total amount due. Be sure to save this report and print out a copy to go with all of the reporting for the month you are working on. Open atap.arkansas.gov in your internet browser. Should also be saved in other bookmarks on Google Chrome. Enter in the login ID. Utiltiy (spelled wrong when set up and can’t be corrected) Password is Water2400. Once you are logged into the ATAP program, you will look for Sales and Use tax. Click on the File a Return. The next page that pops up will be Excise Tax (Import from XML), on this page just click next since you are not uploading anything. Gross Receipts Tax will be the next page. On line #1 you will enter the State Tax (#3) amount from your spreadsheet. Scroll to the bottom of the page and click next. You will click next again since there is nothing to enter on this page. This will automatically figure the State Tax less the discount. Click on Next. Local Sales and Use selection, click Yes to preload locals from previous filing and then click next. Now you will enter Local Sales and Use under Taxable Sales. Next enter the County and City taxes. County amount will come from Box D on line 18 of the spreadsheet and City will come from box D on line 19 of the Spreadsheet. Once you have everything entered a box will pop up with all the information. Make sure your totals match and click on Next. Make sure your totals match (instructions on calculating figures at bottom) and click on Next. This brings you to the Balance Due page. If everything is correct click on Yes to make a payment from your bank account and click next. On the Payment Source page, you will need to confirm the bank account number at the bottom left, and the dollar amount on the right screen, then click next. There are no attachments, so click next on the page. This brings you to a Summary page. Click Submit. Another box will pop up saying “Under penalties or perjury…” Click Ok here. The next screen will be the confirmation screen and you will need to click on Print Return and print two copies. One goes with the rest of the paperwork in the Yellow State Sales Tax Folder and the other goes to Denise to make the journal entries for the payments. **For whatever reason, this page will just keep repeating the process, so once you get to the Submitted page, you can click the >City of Batesville at the top to return home. This page will show the Return as Submitted under Status. All of the confirmations, spreadsheet and Incode printouts will be stapled and filed in the folder until the end of the year. **To check the figures on the return: (1) State tax is figured by multiplying the total by 6.5% and the discount is 2% if paid before the 20th of the month. (2) County tax is figured by multiplying the total by 1.5% and the discount is 2% if paid before the 20th. (3) City tax is figured by multiplying the total by 2% and the discount is 2% if paid before the 20th. At any time, the tax rate should change, these figures would need to be adjusted but the current is State 6.5%, County 1.5% and City 2.0%. Some total boxes will include only the tax amount to be paid and some will show the amount after discount is applied. You may have to figure both ways to get the totals to match the boxes. NOTE*** Each year the amount of the Prepayments changes and are not automatically re-started in January. Someone has to notify them to continue to the bi-monthly drafts. This has to be done after the 25th of December and before the 12th of January. When everything is finished, a copy of the Arkansas Excise Tax Return needs to go to the Clerk to make the payment entries. Also, for disaster recovery purposes, scan the entire packet to Laserfiche under City Clerk, Sales Tax Forms and the appropriate year. This will make copies easily accessible and add a layer of recovery from the Cloud should the originals ever be destroyed.