A city levies $200,000 of property taxes for its current fiscal year. One percent of the tax levy is expected to be uncollectible. The city collects $170,000 of its taxes during the year and another $25,000 during the first two months of the following year. What amount of property tax revenues should the city report in the General Fund financial statements for the current fiscal year?

Question

Quizplus · Accepted Answer

One percent of the tax levy, or $2,000, is expected to be uncollectible. Therefore, the expected amount of taxes to be collected is $198,000 ($200,000 tax levy - $2,000 uncollectible). The city collects $170,000 during the current fiscal year and an additional $25,000 in the following year, for a total of $195,000 ($170,000 + $25,000). Therefore, the amount of property tax revenues that should be reported in the General Fund financial statements for the current fiscal year is $195,000.

A City Levies $200,000 of Property Taxes for Its Current