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. In addition, the city collected $3,000 of prior year taxes during the first two months of the current fiscal year and another $2,000 during the remainder of the current fiscal 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

Property taxes levied: $200,000
Less: Expected uncollectible amount: $2,000 (1% of $200,000)
Expected collectible property taxes: $198,000
Collections during current fiscal year: $170,000
Collections during first two months of following year: $25,000
Collections of prior year taxes during current fiscal year: $2,000
Expected collectible property taxes - Total collections = Uncollected property taxes
$198,000 - ($170,000 + $25,000 + $2,000) = $1,000
Therefore, the amount of property tax revenues that should be reported in the General Fund financial statements for the current fiscal year is $197,000 ($170,000 + $25,000 + $2,000 = $197,000).

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