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Rendition penalty is a penalty applied to businesses that do not file their business personal property rendition, file the rendition late, or file an incomplete rendition.  The rendition is a description of the property and a statement about its value.  The penalty is 10% of the account's base tax.  Penalty and interest are collected. The due date follows the same rules used for regular tax units.  Up to 20% of the penalty may be kept by the appraisal district, with the remainder going to the tax units on the account.  These penalties are charged by individual units.

Other related penalties are an Additional Rendition Penalty of 10% and a Fraudulent Rendition Penalty of 50%.

This topic includes information about applying a rendition penalty to an account, appraisal district processing and rendition penalties, and disbursing rendition penalties.

When certified rolls are loaded, the certified levy and fiscal period levy for the new year are set to the calculated levy amount, which will include rendition penalties if they are embedded. The full calculated levy does not include embedded rendition amounts.

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, Manage Jurisdictions 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 and Client Admin jobs. 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.

ACT8006: Allows users to view the Account Status 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.

ACT8038: See the Tax Unit Maintenance screen.

JURISDICTION_UPDATE: Make changes on the Tax Unit Maintenance screen.

Client Preferences

These client preferences should be considered for applying rendition penalty to an account and disbursing the money to the appropriate entities and appraisal district.  

RENDITION_CONTROL: Set to EMBED if the rendition penalty is added to each 'regular' tax unit's levy. Set to TAXUNIT to keep the money in the rendition units (for ex., 1095).  A conversion process, batch menu no. 10993, can be run to move the rendition money from unit 1095 to the regular units for 2005 and 2006; this should be run only once for each year.

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

DATE_RENDITION_CHANGED: Enter the date (YYYYMMDD format) that rendition penalty begins to be stored in the regular tax units instead of the rendition units (see RENDITION_CONTROL). Rendition payments taken from that date forward will assume that rendition levy is stored in the regular units. For more information, see the TC298X below.

OMITTED_RENPEN_FEB_DUEDATE: If the RENDITION_CONTROL preference is set to TAXUNIT and this preference is set to N, the due date for the rendition tax unit on omitted accounts will be the first of the month at least 21 days in the future. If this preference is set to Y, the rendition penalty tax unit's due date will be 2/1/yyyy, the same as the other units on that omitted account. The default is Y. Rendition tax units will have omitted interest applied to them.

TAXUNIT_RENPENUNIT_SAME: Enter Y if your RENDITION_CONTROL preference is set to TAXUNIT and your tax office stores levy and rendition penalty in the same unit. Enter Nif these amounts are kept in separate units. If set to N, these amounts will not appear on the TC298R2 report. The default is N.

Before running the TC298 (Deposit Distribution Reports) for deposits with paid rendition penalties, you should set the following client preferences:

TL_COMBINE_RENDITION: Set to Y to split the file created by the TC298 into two, with one holding only non-embedded rendition funds as they have been disbursed into the jurisdictions (except for the 5% due to the appraisal district). This would allow non-embedded  renditions to be loaded separately into TaxLedge. (Note: These are the 298R funds, not the 298X monies.) To keep both rendition and other monies in the same TaxLedge load, set this preference to N.

RENDITION_SPLIT_ATTORNEY:  Set to Y to send 5% of the attorney fees applied to rendition amounts to the appraisal district; set to N to send the fees to the jurisdictions

RENDITION_SPLIT_INTEREST: Set to Y to send 5% of the interest applied to rendition amounts to the appraisal district; set to N to send the interest to the jurisdictions.

RENDITION_SPLIT_PENALTY: Set to Y to send 5% of any delinquent penalty applied to rendition amounts to the appraisal district; set to N to send the penalty amount to the jurisdictions.

RENDITION_CONTROL: Set to EMBED if the rendition penalty is added to each 'regular' tax unit's levy. Set to TAXUNIT to keep the money in the rendition units (for ex., 1095), as was done for 2005 and 2006.  A conversion process can be run to move the rendition money from unit 1095 to the regular units for these two years.  For more information, see the TC298X below.

RENDITION_TAXUNIT_TU: 1095 (this is obsolete)

RENDITION_DISBURSEMENT: Set to COMMISSION if, beginning with tax year 2007, the tax office stores rendition penalty in the regular tax units instead of 1095 (for ex.) and 5% of the rendition penalty needs to be pulled back from the penalty column of these units to send to the appraisal district. Set to SEPARATE if, beginning with tax year 2007, the tax office stores rendition penalty in the regular tax units, but the entire rendition penalty amount is withheld from the regular jurisdictions, to be loaded into TaxLedge and paid separately from regular levy.  Both of these settings assume that RENDITION_CONTROL is set to EMBED.  The default is COMMISSION. For more information, see the TC298X below.

298X_R_PRINT_COUNTY_TOTALS:  Set to Y to include subtotals by county on the TC298 R and X reports. Set to N to exclude them.

TC298H_EXECUTE, TC298I_EXECUTE, TC298J_EXECUTE,TC298J2_EXECUTE, TC298J3_EXECUTE, TC298K_EXECUTE, TC298L_EXECUTE, TC298MO_EXECUTE, TC298R_EXECUTE, TC298T_EXECUTE, TC298V_EXECUTE:  Enter Y to produce the report; enter N to omit it.

TC298X_EXECUTE: Enter Y to produce the TC298X; enter N to omit it.  This produces the rendition penalty collection schedule with appraisal district commission reports.  If this preference is set to Y, you have these additional preferences to set:

TC298X1_EXECUTE: Enter Y to produce the TC298X1; enter N to omit it.

TC298X2_EXECUTE: Enter Y to produce the TC298X2; enter N to omit it.

TC298X3_EXECUTE: Enter Y to produce the TC298X3; enter N to omit it.

TC298X4_EXECUTE: Enter Y to produce the TC298X4; enter N to omit it.

TAXLEDGE_USER: Set to Y for tax offices using TaxLedge for remittances; set toN for tax offices who do not use TaxLedge for remittances. Technical note: If set to N and the 298 is run in update mode, the taxledge_date field in the penalty_disbursement_history table is populated with the system date. If set to Y, the taxledge_date is populated by TaxLedge when the remittances are loaded there. The default is Y.

Configuration Options. This must be done at all tax offices, regardless of which disbursement option is used.

1. In the Tax Unit Maintenance-Jurisdiction screen, create one unit for each of the three types of rendition penalty. Use the 1091 - 1999 unit number range. You may need to add a tax rate before saving, but this will not be used in the penalty calculation. You must include the following information as you create the unit:

• Unit Type: enter PENALTY.
• Rendition %: enter .10 for the 10% penalty, .25 for the additional penalty, or .50 for the fraudulent penalty.
• Do NOT check the Compute Rendition checkbox.
• If the client preference RENDITION_CONTROL is set to TAXUNIT, check the Compute Taxes box.
• Click Save.

Repeat these steps for each of the three tax units.

Note: For additional instructions on how to create a tax unit, see Adding New Tax Units.

When rolling tax units forward to a new tax year, make sure that the rendition information is also rolled forward. If not, enter the necessary data.

2. In the Tax Unit Maintenance-Jurisdiction screen, do a search on each regular tax unit that charges a rendition penalty of any type (press F7, enter the unit number and year, press F8).

• Click the Compute Rendition checkbox.  Do NOT enter a Rendition %.
• In the Rendition Penalty, Additional Penalty, and Fraud Penalty fields, enter the tax unit numbers you created in step 1.
• Click Save.

3. For tax offices servicing multiple counties, the 5% rendition commissions can be allocated to each county separately if, in the Tax Unit Maintenance-Jurisdiction CAD Relation screen, the CAD Tax Unit is set to REND for each unit created to store this commission (for ex., 1096 for one CAD and 1097 for a different CAD. The Disburse to TaxLedge box must be checked on the main Tax Unit Maintenance screen for each of these units. The client preference 298X_R_PRINT_COUNTY_TOTALS must be set to Y to include subtotals by county on the TC298 R and X reports and to use this allocation method.

Manual Processing. to apply rendition penalty to an account manually, use the Account Master screen:

1. From the Go To list, select Account Master.  The Account Master Summary screen will appear. Here you will attach a rendition penalty to a specific account.

• If the account has carried over from a previous screen, the screen will fill with data.
  
  If the Account Number field is blank, enter the account number, then press F8
  
  If you need to enter a different account number, press F7, key in the new account number, then press F8.
• Click the Property Values tab.
• At the right side of the screen are three rendition penalty fields.  Click the arrow next to the appropriate penalty type, then select either Apply Penalty, Waiver Requested and Granted, or No Penalty.
• Click Save & Calculate Levy.

2. To check the calculation, go to either the Account Status or the Receivable screen.  The Penalty Detail tab in the Receivable screen displays data for rendition penalties that have been allocated to the regular tax units.  If the rendition flag has been removed, the Penalty Detail screen will show $0.00 amounts. See Add Rendition Penalty to Jurisdictions for information on how to do this. Penalties for all years are displayed on the Penalty Detail screen.

If an account had any partially paid rendition penalty prior to running batch menu no. 10993, Convert Rendition Penalty to Individual Units, and a change needs to be made on Account Master that affects levy, a popup message will appear asking that you contact ACT for assistance.  

Appraisal District Processing

Before applying supplement/correction files from the CAD to the production tables, you should run the Regenerate Receivables in CAD Tables process, batch menu no. 719. When a supplement or correction file is loaded to the CAD tables, rendition penalties are put into the rendition tax units (for ex., unit 1095).

If the client preference RENDITION_CONTROL is set to EMBED, this Regenerate Receivables process moves the rendition penalty amounts from the rendition tax units to the individual units, adding the funds to the levy and paid levy for each unit, setting the rendition flag on the Property Value screen, and populating the Penalty Detail screen.  All of the monies are moved, including the 5% normally distributed to the appraisal district.

If the same preference is set to TAXUNIT, the monies will remain in the rendition units and the rendition flag will be set. The Penalty Detail screen will not be populated. This will occur for all years, not just the current year, even if the tax office did not run the Convert Rendition Penalty to Individual Units for years prior to 2007!

If the tax office ran the  Convert Rendition Penalty to Individual Units process, paid rendition penalty was left in the rendition tax unit (for ex., 1095). When the Regenerate Receivables process is run, this paid penalty is taken from the rendition unit and allocated across the regular tax units as part of the paid levy.

Disbursing Rendition Penalty. This can be done in several ways, which are controlled by some of the client preferences discussed above:

If the client preference TL_COMBINE_RENDITION is set to Y, the file created by the TC298 is split into two, with one holding only non-embedded rendition funds as they have been disbursed into the jurisdictions (except for the 5% due to the appraisal district). This would allow non-embedded  renditions to be loaded separately into TaxLedge. ( These are the 298R funds, not the 298X monies. TC98X money is always put in the same file as the tax levy money - in TaxLedge, this is the Property Tax load) To keep all rendition and other monies in the same TaxLedge load, set this preference to N.

A.  EMBED/COMMISSION (ACT recommends this option)

This option was developed to allow accurate disbursements to the delinquent law firms who contract with the ACT 7 tax offices. Rendition penalties are added to the regular tax levy in each unit.

If RENDITION_CONTROL is set to EMBED and RENDITION_DISBURSEMENT is set to COMMISSION, rendition penalty funds are disbursed to the regular tax units as a part of the normal disbursement process.  The 5% of the penalty that is due to the appraisal district (that is, the commission portion) must be removed from these units and put into the rendition unit (for ex., 1095).  To do this, the TC298X must be run periodically (see below for more information). This does not need to be daily, and can be done as little as once a year. The 298D Disburse Total amounts includes the tax levy, rendition levy (100% of it), and the rendition penalty and interest.

If RENDITION_CONTROL is set to EMBED, ACT recommends that the Convert Rendition Penalty to Individual Units process (batch menu no. 10993) be run for 2005 and 2006 so that all rendition amounts will be stored in the regular units instead of having the penalty for those two years stored in the rendition unit and the penalty for 2007 stored in the regular units.  This process needs to be done one time only.

This process assumes that the Penalty Detail screen is populated with the rendition penalty amounts assessed to the regular tax units for those accounts having rendition penalty.

B. EMBED/SEPARATE

This option also allows accurate disbursements to the delinquent law firms who contract with the ACT 7 tax offices, but it assumes that disbursements of rendition penalty are done at the same schedule as levy disbursals.  Rendition penalties are added to the regular tax levy in each unit.

If RENDITION_DISBURSEMENT is set to SEPARATE, the TC298X must be run daily (see below for more information). The entire rendition penalty (as opposed to the 5% mentioned above) is removed from the regular tax units and can be loaded into TaxLedge as a separate file, to be paid separately from regular tax levy.

This process assumes that the Penalty Detail screen is populated with the rendition penalty amounts assessed to the regular tax units for those accounts having rendition penalty.

C.  TAXUNIT

This is the method used in 2005 and 2006, in which rendition penalty is. It can safely be used in 2007 and after by tax offices that collect for only one entity.  School districts fit this scenario, for example.    The TC298X does not need to be run. The TC298X_EXECUTE preference can be set to N.

If RENDITION_CONTROL is set to TAXUNIT, all of the rendition penalty levy is in the tax unit set in steps 1 and 2 above.

The Convert Rendition Penalty to Individual Units process does not need to be run.

The client preference TC298R_EXECUTE needs to be set. Enter Y to produce the TC298R.  This shows the distribution of rendition amounts for the process that keeps rendition funds in a separate tax unit (as was done in 2005 and 2006).  A file for TaxLedge is also created.

298X: this produces a file (called TCS298XFR) that can be loaded into TaxLedge as a Property Tax file type (not a Rendition Penalty type).  It can be run only for closed accounting periods.  Once a 298X file has been loaded into TaxLedge, it cannot be run again for the same deposit dates in the Tax Collection System.

The TC298X process assumes that the Penalty Detail screen is populated with the rendition penalty amounts assessed to the regular tax units for those accounts having rendition penalty.  

Four reports are produced by the TC298X.  The X2, X3, and X4 have the same columns of information: levy collected (this is tax levy that has rendition embedded in it + rendition penalty), rendition penalty collected (this is the 100% penalty due to the jurisdictions and appraisal district)), penalty and interest collected (on both tax levy and rendition penalty), penalty and interest on the rendition, rendition discount, the 5% commission due to the appraisal district, and the amount already disbursed [(levy collected + penalty & interest collected - appraisal district commission].  The 5% commission is sent to the appraisal district, unit 1095, as part of the disbursement process in TaxLedge.

If partial payments have been made to an account, you must remember that rendition penalty is paid first. This means that the rendition penalty collected will not be 10% (or 50%) of the levy collected, but will be a higher percentage of the levy collected.

• TC298X1: This begins with a summary of the essential client preference settings, then lists by tax unit, then by deposit and account number, the rendition penalty details for each account.  Grand totals are given at the end. Totals by year and unit are provided and grand totals are given at the end.
• TC298X2: This gives the totals by tax unit and then by year, with each unit listed on a separate page. Grand totals are given at the end.
• TC298X3: This gives details by account, year, and tax unit.  Totals for each account are listed. Grand totals are given at the end.
• TC298X4: This is a one page summary of totals by tax unit. Grand totals are given at the end.
• TC298X5: This shows, for each tax unit and year, a breakout of rendition penalty between M&O and I&S.  Grand totals are given at the end.