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Omitted property is defined as real property that was omitted from an appraisal roll in any of the five preceding years or personal property that was omitted from the appraisal roll in one of the preceding two years.  A property can be considered omitted only if the account is delinquent for the tax year in question.  Accounts coded with erroneous homestead exemptions are also treated as omitted properties. (See the client preference TA_HEA_SUP_CD). Omitted interest is not charged on accounts with active military deferrals.

Interest is charged at a rate of 1% per month (1% of the levy) beginning with the normal delinquency date for the year the account would have become delinquent and ending when the account becomes delinquent, which is February 1st at least 180 days away from the date the account is added to the ACT system.  (Tax Code Sec. 26.09d, 31.04) There is one exception (per SB 551, 2011 legislative change), which provides 120 days before omitted interest can be applied in cases where only improvement value should be assessed this interest. If payment is made before the 120 days has ended, no omitted interest is charged. However, if a payment is made after the Delayed Omitted Property Date (the first of the month after 120 days has ended), then omitted interest is assessed from the original delinquency date (for the year the account would have become delinquent).

If the account goes delinquent, normal penalty & interest rules apply.  The omitted property interest does not continue to accrue, but what was due originally is still due.

Example:  An account is added for the 2002 tax year to the ACT system July 19, 2004.  The new delinquency date is February 1, 2005. From February 1, 2003 (the date the account would have become delinquent had it been on the roll) to February 1, 2005 , the new delinquency date, is 24 months. Therefore, 24 months of omitted property interest accrues. Beginning February 1, 2005, a penalty of 6% of the remaining levy is assessed (6% because it is before July 1 of the tax year the account becomes delinquent) along with interest of 1%.  The original omitted interest charge of 24% is still due, so the total interest for this account is now 25%.   

If a deferral is added to the omitted account, deferral interest is charged only from the delinquency date, assuming that the deferral start date is before that due date.  For ex., if a property is added in June 2007 as an omitted account for 2005, the delinquency date for that account is 2/1/2008.  Omitted interest begins accruing as of 2/1/2006.  A deferral date of 11/15/2007 is entered later.  Assume no payment is made on the account.  Omitted interest accrues through 1/31/2008 (for a total of 24%) and deferral interest of 8% per year begins as of 2/1/2008.  The omitted interest is still due and is added onto the deferral interest.  

Omitted property interest is also calculated on rendition tax units if the client preference RENDITION_CONTROL is set to TAXUNIT.

If an omitted property account receives increased levy as a result of a correction file, the due date will be moved to 2/1 of the next year at least 21 days in the future. If the levy decreases, the due date is not changed.

User Entitlements

The following user entitlements must be set for each user who needs access to the Property Value Detail screen. They are part of the Make Value and Levy Account Master Changes and View Only Major Screens tasks.

Users having any job can view the Property Value Detail screen. Changes can be made with the CAD Changes Save and Calc AG Rollback job. See Tasks, Entitlements, and Jobs for more information.

ACT8002: Allow users to view the Account Master screens.

ACT8005: Allows users to view the Receivable screen.

PRIOR_YEAR_BUILD: Allow users to click the Prior Year button.

ACCTM_SAVE_AND_CALC_BUTTON: Allow users to click the Save and Calculate button.

ACCTM_PROPVAL_DETAIL_UPDATE: Allow users to change and insert information on the Property Value Detail tab. This includes the value fields on the Summary tab.

Client Preferences:

TA_HEA_SUP_CD: If your tax office contracts with the homestead exemption audit program for erroneous homestead exemptions, set this preference to the code the CAD will populate for the erroneous homestead accounts (for ex., 11.43H). These accounts will be treated as omitted properties. By default, this is expired and thus ignored.

Use the Property Value Detail screen to designate an account as being omitted property.

1. From the Main Menu, click the Account Master () button or select Update, then Account Master, or click the Go To drop-down list and select Account Master.  The Account Master Summary screen will appear.
2. You must add the account to the tax roles for the year that the property was omitted. To do this, follow the Add an Account instructions.  Be sure to select either Omitted or Delayed Omitted in the Omitted Property drop-down list on the Property Value Detail screen.

Note: The Omitted Property box in the Receivable screen will show either Y (normal omitted) or F (delayed omitted) for each unit levying taxes for that year.

3. Click the Summary tab.
4. Click the Save and Calculate Levy button.  The Penalty Control field on the Receivable screen will have a Y in it if Omitted was selected in step 3 or an F if Delayed Omitted was chosen.

Note: If the client preference CALCULATE_LEVY_YEAR is set to a prior year, you cannot recalculate levy for the current or future year. You can make the changes on the Account Master screens, but the Save and Calculate button will be disabled. You can use the Save (F10) button but this will not recalculate the levy.

If an account has been written off due to a legal situation such as a judgment or bankruptcy, you will get a warning message if you try to make a levy change on the Account Master screen.

If this is a Delayed Interest account, the Delayed Omit Property Date will be populated in the Change Delinquency Dates popup on the Account Detail screen. This will be the first of the month at least 120 days in the future.

To clear property that has been flagged as omitted by mistake:

1. From the Main Menu, click the Account Master () button or select Update, then Account Master, or click the Go To drop-down list and select Account Master.  The Account Master Summary screen will appear.
2. Click the Prop Value Detail tab.  The Property Value Detail screen will appear.
3. In the Omitted Property drop-down list, select Erroneous Omitted or remove any selection by choosing the white space at the top of the list.
3. Click the Summary tab.
4. Click the Save and Calculate Levy button.  The Penalty Control field on the Receivable screen will have a Y in it if Omitted was selected in step 3 or an F if Delayed Omitted was chosen.
5. Click the Account Detail tab.
6. Click the Change Delinquency Date button.
7. If desired , change the Delinquency Date for the units in that year to the first of the month at least 21 days in the future. The Tax Collection System does not automatically change delinquency dates to be earlier than they are currently set.
8. Click Save Changes.