Washington County Assumed the Responsibility of Collecting Property Taxes for All

question 3

Essay

Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct 1.5 percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.
1. Current year tax levies to be collected by the Tax Agency Fund were:

$\begin{array}{llcc} \text { County General Fund } & \$9,800,000\\ \text {Town of Samuels } &6,200,000\\ \text { Washington County School District } &9,600,000\\\end{array}$

2. In the first half of the year $\$ 4,120,000$ was collected for the County General Fund, $\$ 3,456,000$ for the Town and $\$ 4,608,000$ for the School District.

3.Liabilities to all three units were recorded

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Definitions:

Budget Deficit

A financial situation where an entity's expenditures exceed its revenues over a specified period, prompting borrowing or use of saved reserves.

Continuing Resolution

A type of legislation that allows government agencies to continue operating at current funding levels until new budget legislation is passed.

Budgetary Process

A systematic method used by organizations or governments to allocate financial resources and plan for future financial needs.

Continuing Resolutions

Legislative measures used by the government to allow funding for its operations in the absence of an agreed-upon formal budget.