1.Escrow
Escrow taxes are collected in advance of the time they are due. In Washington state, escrow is collected for reasons such as:
- A mobile home is being moved off of a property
- A new subdivision is being created
- A business is closing and taxes need to be collected on the personal property owned by the business
Escrow payments go through a three state cycle:
- Created – Escrow is created in PACS 9.0.
- Paid – The taxpayer pays the escrow and a credit now exists in the system.
- Applied – The escrow is applied to the taxpayer’s taxes.
Flexible Escrow – This function is intended to account for creating, maintaining, applying and posting escrow in the most flexible way.
Note that when a transaction is voided, the escrow reverts from its current state to the previous state. For example, if an escrow is in a paid state and the payment is voided, the escrow reverts to created. If an applied escrow is voided, the escrow reverts to the paid state and is now available to be used for something else.
With PACS 9.0 escrow features, you can create and manage property escrow. The escrow tools are accessed through the Escrow/Overpayment Credit panel in the general property view. The Escrow Worksheet opens from this panel.
Escrow payments are posted through the Payment Cart. Once posted, the escrow appears in the property’s Payment History panel. Escrow is applied using the Apply Escrow Wizard or the Mass Apply Escrow Wizard.
1.1.Setting Up Escrow Type Codes
Purpose
Use this procedure to set up code files that are used when creating escrow worksheets on properties. Values that the system can use to calculate escrow can be set and locked in the code file.
Prerequisites
- To configure escrow worksheets and enable value locking, Enable Escrow Worksheet and Value Locking is set to
True
in PACS.ADMIN (Tools > System Configuration > Escrow).Note The options depicted below assume this setting is
True
.
Procedure
- In PACS.ADMIN, choose Tools > Code File Maintenance.
- Open the General section.
- Double-click Escrow Type Codes.
- To add a new code, click Add in the Escrow Type Codes dialog box and do the following:
- Select the Tax Year during which the Escrow Type Code applies.
- Enter a Code and brief Description.
Note Steps (c) through (h) below are available when the configuration is set as specified in the above prerequisite.
- If needed, select a Start Date.
Tip The Start Date lets the user know that escrow should not be collected on the type until after this date.
- To automatically print the Plat Certification at the time of posting, select Print Plat Certification.
- To assign property components percentages of assessed value on which to calculate escrow and advance/future taxes, choose from following options in the Escrow Calculation Elements section as needed:
- Land
- Improvements/Personal Property
- Special Assessments
- If required, select the Lock Value option for any of the values entered above.
Note When Lock Value is selected and the escrow payment is posted for the corresponding segment, those property values used for calculating special assessments and property taxes are locked.
When locking properties whose valuation method is BOE Value, Land and Improvement locked value fields display a value of 0$ .
- Select the default pay status that is set when posting the escrow payment for this type.
- Use the Collection/Distribution Event Mapping grid to set the Event, financial Action, associated Account Number, payment Type, and Description for postings. Click Add to add a row to the grid, then use the drop-down lists in the columns to make selections.
- Click Save.
- To edit a pre-existing code, select the code in the Escrow Type Codes dialog box and click Edit.
- To delete a code, select the code in the Escrow Type Codes dialog box and click Delete.
- When you have finished setting up Escrow Type Codes, click Close.
1.2.Entering Escrow
Purpose
Use this procedure to assign escrow amounts to property records.
Prerequisite
- The Enable Escrow Worksheet and Value Locking option to
False
in PACS.ADMIN (Tools > System Configuration > System (category) > Escrow).Important Enable the option above to access the escrow worksheet, which provides expanded escrow-related functionality. The worksheet estimates the amount of escrow needed to pay the taxes due on a property. The procedure for using the Worksheet is depicted in Entering Escrow in the Worksheet.
- Escrow types have been set up in PACS.ADMIN (Tools > Code File Maintenance > General > Escrow Type).
- In order to perform this procedure, the following user right is required:
- Receipting > Escrow > Create Escrow
Procedure
- In PACS 9.0, open a property and expand the Escrow / Overpayment Credits panel.
- To open the escrow worksheet, in the Escrow(s) section, click Add.
- In the Escrow Worksheet dialog box, complete the following options as required.
- Year
- Escrow Type
- Escrow Due
- Comment
- If needed, indicate if the property is split/segregated. This does not affect escrow calculation.
- Choose either Set in Full Pay Status or Set in Half Pay Status, which splits the amount into two equal amounts. Then set the payment due dates in the H1 Due Date and H2 Due Date fields as required.
- Do one of the following:
- To save the data and leave the worksheet open, click Apply.
- To save the data and close the worksheet, click OK.
- In the Escrow / Overpayment Credits panel, you can review the escrow records for a property with the following options:
- To sort the escrow records according to one of the fields (such as Tax Year or Status), click that field’s heading. To list the records in the opposite order, click a second time.
- To review and edit the details for an escrow record, double-click the record; the Escrow Worksheet opens.
- The following fields in the panel relate to the escrow records and the total due on the property.
- Total Escrow Available
- Total Escrow Selected
- Total Due on Property
- Balance if Applied
- To remove an escrow record from the Escrow / Overpayment Credits panel, select that record’s check box at the left of the row, and click Delete.
Note An escrow record can be removed only if the status of the record is Created.
1.3.Entering Escrow in the Worksheet
Purpose
Use this procedure to set worksheet options and assign escrow amounts to property records.
Note Advance taxes cannot be automatically calculated on properties valued through income approach, but an advance tax value can be entered manually using the override option in the following procedure.
Prerequisite
- In order to perform this procedure, the following user right is required:
- Receipting > Escrow > Create Escrow
- The Escrow > Edit Segregation Status user right may be required.
- The Enable Escrow Worksheet and Value Locking option is set to
True
in PACS.ADMIN (Tools > System Configuration > System (category) > Escrow).Note When a MH is sold and moved out of the county, taxes are due for the entire year that the MH would have been in the county. The taxpayer must pay these advance taxes and the excise tax for the sale. For more information on locking (or unlocking) a property’s appraised values (say, for the purpose of calculating advance taxes on a Mobile Home property that has moved), see Locking and Unlocking Values.
- Escrow types have been set up in PACS.ADMIN (Tools > Code File Maintenance > General > Escrow Type).
- To edit an existing escrow record, the escrow is in
New
orCreated
state.Note PACS estimates the taxes due in the escrow advance year (this typically occurs before bill creation). The calculation depends on the specifics of the selected escrow type.
The aggregate levy rate for the property is determined and levy elements are calculated as follows: If, for example, Land elements are selected and the escrow is on a real or mobile home property, all land detail records for the property are totaled in the advance year. The estimated value for each is the land detail value * (aggregate levy rate / 1000) * (land percentage / 100).
If Special Assessments are selected and the escrow is on a real or mobile home property, the estimated special assessment value is ([assessment_amt] + [additional_fee_amt]) * the special assessment percentage.
The above estimates are summed to get the total advance taxes due. Senior exemptions are ignored when calculating this estimate.
Procedure
- In PACS 9.0, open a property and expand the Escrow / Overpayment Credits panel.
- To open the escrow worksheet, in the Escrow(s) section, click Add.
- In the Escrow Worksheet dialog box, complete the following options as required.
Escrow Worksheet dialog with Worksheet functionality enabled
- Taxpayer
- Change
- Tax Year
- Escrow Type
- Calculation Date
- Property Split/Merge
- Select Improvements to Lock
- Recalculate
- Calculated Escrow
- Property Taxes Due
- Special Assessments & Fees Due
Note Amounts due reflect taxes due at the time the escrow record is created. These taxes are generally delinquent.
- Additional Fee
- Comment
Notes
– In rare instances, the Calculated Escrow Base Amount displayed on the worksheet may vary from the Taxes value displayed in the Property’s Taxable Summary dialog by $.01. This is a result of the different calculation methods and rounding for each value (access the Taxable Summary dialog by clicking Tax Summary in the Tax Area, Exemptions, & Special Assessments panel).
– If all the criteria for inclusion is met (the selected Escrow Type code includes land in the calculation and there is a land component), then any productivity loss value is subtracted from the assessed value to determine the taxable value.
- Taxpayer
- Choose either Set in Full Pay Status or Set in Half Pay Status, which splits the amount into two equal amounts. Then set the payment due dates in the H1 Due Date and H2 Due Date fields as required.
Note When paying escrow, each item selected in the worksheet is added separately to the payment cart (itemized) for processing.
- Do one of the following:
- To save the data and leave the worksheet open, click Apply.
- To save the data and close the worksheet, click OK.
- In the Escrow / Overpayment Credits panel, you can review the escrow records for a property with the following options:
- To sort the escrow records according to one of the fields (such as Tax Year or Status), click that field’s heading. To list the records in the opposite order, click a second time.
- To review and edit the details for an escrow record, double-click the record; the Escrow Worksheet opens.
- The following fields in the panel relate to the escrow records and the total due on the property.
- Total Escrow Available
- Total Escrow Selected
- Total Due on Property
- Balance if Applied
- To remove an escrow record from the Escrow / Overpayment Credits panel, select that record’s check box at the left of the row, and click Delete.
Note An escrow record can be removed only if the status of the escrow record is Created.
1.4.Locking and Unlocking Values
Purpose
Use this procedure to lock or unlock a property’s appraised values in the Assessor
role. This is often done for the purposes of calculating advance taxes on a Mobile Home property that has moved because when a MH is sold and moved out of the county, taxes are due for the entire year that the MH would have been in the county. The taxpayer must pay these advance taxes and the excise tax for the sale.
Values may only be locked in the current year, and the lock applies for that year only. After the year is certified, the locked values may then be modified through supplement processing as always.
Note the following:
- On a Real property, all Land details are locked; individual improvements may be locked separately.
- Individual Improvements may be locked on a Mobile Home property.
- When locking a Personal property’s value, all segments are locked.
- Land Details cannot be added to locked properties, and existing Improvement Details, Land Details (and Segments) cannot be deleted. However, when an element’s values are locked, much of its data is still editable when its detail is opened from the Property view.
- Properties values using the income approach method cannot be locked, and their advance taxes cannot be calculated. But advance tax value can be entered manually using the override option in the Entering in the Escrow Worksheet procedure in the Escrow guide.
Prerequisites
- In order to perform this procedure, the following user rights are required:
- Property > Edit Property > Recalculate Property
- Property > Edit Property > Lock Property Values
- Property > Edit Property > Unlock Property Values
Notes (1) Properties with Income Approach valuations cannot be locked, and properties with locked values cannot have their valuation method switched to Income Approach. (2) Locked properties cannot be part of a split or merge. (3) Exemptions cannot be added or removed from a locked property.
Procedure
- In PACS 9.0, open the property record and choose Commands > Lock Property Values to lock its values.
- If you are working with a Real or Mobile Home property, do the following:
- In the Lock Property Values dialog box, select the required eligible improvements to be locked.
Note If you attempt to lock an improvement designated as Homesite and assigned a Senior Exemption, a warning instructs you to create a new property with the Senior Exempt Homesite Improvement. This new property may be locked.
- If you are working with a Real property and do not wish to lock land values, deselect the Lock Land Value option.
- Click OK.
- In the Lock Property Values dialog box, select the required eligible improvements to be locked.
- If you are working with a Personal property, click OK to confirm your selection.
Next Steps
To unlock a property’s values, open the property record and choose Commands > Unlock Property Values.
1.5.Paying Escrow
Purpose
Use this procedure to process an escrow payment.
Prerequisite
- In order to perform this procedure, the following user right must be assigned to your ID:
- Receipting > Escrow > Collect Escrow
Procedure
- In PACS 9.0, open a property and expand the Escrow / Overpayment Credits panel.
- Select the escrow items to pay from the Escrow(s) grid and choose one of the following options:
- Pay H1/Next to post the first half payment.
- Pay Full to post the full or remaining payment.
- In the Payment Information section of the Post Payment dialog box, complete the following options as required.
- Change Batch
- Drawer
- Paid Under Protest
- Paid By
- Change
- Amount Due
- Payment Code
- In the Amount Paid section, enter information about the tenders, one per row, used to make the payment.
- To add a tender, click Add.
- To delete a tender, select it and click Delete.
- To edit a tender, double-click it and complete the following fields as required:
- Tender Type
- Amount Tendered
- Ref. Number
- Desc. (Date, Name, etc.)
- DL Number
- DL State
- In the Amount Paid section, complete the following fields as required:
- Credit Card
- Type
- Last 4#
- Auth. Code
- CCCC
- Swipe
- Total Paid
- Balance Due
- Change Due
- In the Options section, select the following options as required:
- Print Receipt
- Copies
- Validate Checks
- Print Statement
- Click Post to post the payment.
- If you selected the
Overpayment Credit
payment code, in the Payment Distribution dialog box, specify the property or properties that should receive the credit and then click OK:Note If you need to select a property that is not listed, click Add to add the property to the list.
- If a slip printer is configured for your workstation, after any receipts have been printed, in the Validation dialog box, use the following options as required:
- Validate & Advance – Sends the validation line to the slip printer and advances the selection to the next row.
- Validate – Sends the validation line to the slip printer.
- Skip – Advances the selection to the next row.
Next Steps
After an escrow is paid, the system may lock taxable values on the property if (1) the escrow type code attached to the escrow record specifies value locking, (2) the escrow worksheet system setting is set to True
in PACS.ADMIN (Tools > System Configuration > System (category) > Escrow), (3) the user has the Lock Property Values user right assigned to his/her ID (Property > Edit Property > Recalculate Property > Lock Property Values), and (4) the escrow was paid in full. If values are already locked, the system asks permission to unlock values, recalculate, and lock the values specified in the escrow type code again.
An event is generated when escrow is paid. The worksheet can be printed from the event.
2.Applying Escrow
2.1.Applying Escrow to a Property Record
Purpose
Use this procedure to apply collected escrow to the amount due on a single property.
Prerequisite
- In order to perform this procedure, the following use right is required:
- Receipting > Escrow > Apply Escrow
Procedure
- In PACS 9.0, open a property and choose the Escrow / Overpayment Credits panel.
- Select the escrow items to apply, and choose one of the following options:
Note All items selected should be for the same tax year.
- To select a batch for this processing, click Change Batch. In the Select Batch dialog box, choose a batch and click Select.
- Review the following fields in the Apply Escrow Wizard:
- Total Taxes Due
- Date Paid
- Total Escrow Available
- Amount of Escrow to Apply
- PACS User
- Select one of the following options (available only when relevant):
- Generate a Refund
- Apply as an Over/Under Payment Variance
- Click Apply to apply the escrow.
2.2.Applying Escrow to Multiple Properties
Purpose
Use this procedure to apply collected escrow to the amount due on multiple properties with a single process. This procedure also allows for generating the Report of Collected Escrow and for reprinting receipts associated with escrow transactions.
Prerequisite
- In order to perform this procedure, the following user right is required:
- Receipting > Escrow > Apply Escrow
Procedure
- In PACS 9.0, choose Activities > Mass Maintenance (Escrow) > Mass Apply Escrow.
- To view mass apply escrow runs for a given year, select the year from the Tax Year drop-down list in the Mass Apply Escrow Run view.
- In the Mass Apply Escrow dialog box, click Add to begin a new run.
- In the Year field of the Mass Apply Escrow Wizard, select the tax year.
The Available Escrow Type column is populated with all available escrow types for the selected tax year.
- In the Available Escrow Types column, move an escrow type to apply escrow for to the Selected Escrow Type column.
- To apply escrow for only those properties that have been split or merged, choose Select Properties with Split/Merge Indicator Only.
Note Properties are marked as having been split or merged in the Escrow(s) grid on the Escrow/Overpayment Credits panel.
- Click Next to continue with the Mass Apply Escrow Wizard Select Properties dialog box.
Selected properties are displayed. The properties listed here (1) have had their escrow collected for the selected tax year, and (2) have an escrow type matching one of the types selected in the previous dialog.
- Review the following fields:
- Property ID
- Owner ID
- Owner Name
- Escrow Amt
- Taxes Due
- Diff.
- % Diff.
- Use the following options as required:
- For properties with a difference between the amount due and escrow to be paid that is within the under/overpayment variance, select the Modify to Zero column option to modify the bill to the amount being paid.
- To apply escrow to other properties associated via a split/merge with one of the displayed property IDs, click the ellipsis button in the Apply To column.
Note When a single escrow is applied to multiple properties, the escrow is applied proportionally across the amounts due on the properties. Any remaining value is assigned to the original escrow property as an overpayment credit. If Modify to Zero is selected, the other properties’ bills are also modified if they are within the variance.
- To delete a property from the list of properties, select the property and click Delete.
- To view a property in the property view, select the property and click Details.
- Click Next to continue.
Note We recommend that you create a batch if prompted to do so.
- In the Mass Apply Escrow Wizard Select Options dialog box, use the following options as required.
- The field to the right of the Change Batch button shows the currently selected batch.
- If this field is blank, you must select a batch for this processing by clicking Change Batch, selecting a batch in the Select Batch dialog box, and then clicking Select.
- If this field is not blank, you can change the batch by clicking Change Batch, selecting a batch in the Select Batch dialog box, and then clicking Select.
- To print receipts for the escrow applied once processing is complete, select Reprint Receipts.
- To print corrected tax statements once processing is complete, select Print Tax Statements for properties not posted in full.
- The field to the right of the Change Batch button shows the currently selected batch.
- Click Next to continue with the Summary Page.
- On the Summary Page, review and verify the selected options. The PACS User field is the user who logged on to PACS 9.0.
- Click Finish to process the accounts.
- Review the amount displayed in the Total Escrow Available field. This is the amount of escrow in a
Paid
state from the selected run. To generate the Escrow Value Listing Report that lists totals of the escrow values collected in detail or summary format, click the Print button displayed next to this field. - In the Mass Apply Escrow Run view, use the following options as needed:
- Print Collected Escrow Applied
- Print Escrow Value Listing
- Reprint Receipts
Result
The escrow is applied to the selected properties. Depending on the number of properties selected, the process could be lengthy.
3.Escrow Reports
3.1.Generating an Escrow Collections Activity Report
Purpose
Use this report to view the escrow collections activity for the specified years and other criteria.
Procedure
- In PACS 9.0, choose Reports > Escrow > Escrow Collections Activity Report.
- In the Escrow Collections Activity Report Dialog box, in the Escrow Year drop-down list, either select an escrow year for which to run the report or select ALL for all the years.
- Set one of the following in the Report Settings section:
- To limit the report results to a specific batch ID or IDs, select Batch(es) and click the ‘…‘ field to display the Select Batch dialog box. Select the batch IDs to include in the report.
- To limit the report results to a date range in which the escrow batches were posted, select Balance Date and select a date range in the drop-down lists.
Note If you select a beginning date and leave the end date blank, the end date will be set to the current system date.
- To limit the report results to either specific property IDs or specific taxpayers, select Other.
- To search by property ID, select Property ID, and then select Search to display the Property Search Wizard. Select the property IDs to include in the report.
- To search by taxpayer, select Taxpayer, and then select Search to display the Account Search Wizard. Select the taxpayers to include in the report.
- To set the output settings, do the following in the Output Settings section:
- In the Format drop-down list, select the report output format.
- In the Filename field, enter the report file name.
- In the Description field, enter a report description.
- Click Preview to preview the report. Click Post to generate the report.
3.2.Generating an Escrow Listing Report
Purpose
Use this report to view all the properties for which the escrow was collected and/or applied, organized by property and date.
Procedure
- In PACS 9.0 choose Reports > Escrow > Escrow Listing.
- In the Escrow Listing Report Dialog box, in the Year drop-down list, select a year for which to run the report.
- To refine the criteria for the report, set one or more of the following in the Report Settings section:
- To limit the report results to a specific escrow type code or codes, click
in the Escrow Type field to display the Escrow Type Selection dialog box. Select the escrow type codes to include in the report.
- To limit the report results to a date range in which the escrow was posted, select a date range in the Collection Date drop-down lists.
Note If you select a beginning date and leave the end date blank, the end date will be set to the current system date.
- To limit the report results to a specific escrow type code or codes, click
- To set the output settings, do the following in the Output Settings section:
- In the Format drop-down list, select the report output format.
- In the Filename field, enter the report file name.
- In the Description field, enter a report description.
- Click Preview to preview the report. Click Post to generate the report.
3.3.Generating an Escrow Value Listing Report
Purpose
Use this procedure to generate reports for the totals of the escrow values collected, either in detail or in summary format.
Procedure
- In PACS 9.0, choose Reports > Escrow > Escrow Value Listing.
- In the Escrow Value Listing Report Dialog box, in the Year drop-down list, select a year for which to run the report.
- To refine the criteria for the report, set one or more of the following in the Report Settings section:
- To narrow down the report to a specific escrow type code or codes, click
in the Escrow Type field to display the Escrow Type Selection dialog box. Select the escrow type codes to include in the report.
- To limit the report to collection dates within a specific date range, select the date range in the Collection Date drop-down lists.
Note If you select a beginning date and leave the end date blank, the end date will be set to the current system date.
- To narrow down the report to a specific escrow type code or codes, click
- To generate a detailed report, do the following in the Report Settings section:
- Select the Detail option, and then select either or both of the following:
- To include only properties with Amount Overpaid greater than zero, select Include only properties with Amount Overpaid not equal to zero.
- To include only escrows that have not been applied, select Include only Escrows that have not been applied.
- Select the Detail option, and then select either or both of the following:
- To generate a summary report, select the Summary option in the Report Settings section. A summary report includes only the totals of escrow paid, escrow applied, tax amount, property tax variance, and the current taxable value,
- To set the output settings, do the following in the Output Settings section:
- In the Format drop-down list, select the report output format.
- In the Filename field, enter the report file name.
- In the Description field, enter a report description.
- Click Preview to preview the report. Click Post to generate the report.
3.4.Generating a Collected Escrow Applied Report
Purpose
Use this report to view the amount of collected escrow applied or refunded for the specified tax year, escrow type, and date range.
Procedure
- In PACS 9.0, choose Reports > Escrow > Collected Escrow Applied.
The Collected Escrow Applied Report Dialog box is displayed.
- In the Collected Escrow Applied Report Dialog box, in the Year drop-down list, select a year for which to run the report. Escrow applied during this year is eligible for inclusion in the report.
- To refine the criteria for the report, set one or more of the following in the Report Settings section:
- To limit the report results to a specific escrow type code or codes, click
in the Escrow Type field to display the Escrow Type Selection dialog box. Select the escrow type codes to include in the report.
- You can either select All Batches, or restrict the batches selected in one of the following ways:
- To limit the report results to a specific batch ID or IDs, select Batch(es) and click
to display the Select Batch dialog box. Select the batch IDs to include in the report.
- To limit the report results to a date range in which the batches were posted, select Batch Balance Date and select a date range in the drop-down lists.
Note If you select a beginning date and leave the end date blank, the end date will be set to the current system date.
- To limit the report results to a specific user who applied the escrow, select the user in the User Name drop-down list.
- To include Escrows tied to specific properties, enter the Property IDs in the Property IDs field.
- To limit the report results to a specific escrow type code or codes, click
- To set the output settings, do the following in the Output Settings section:
- In the Format drop-down list, select the report output format.
- In the Filename field, enter the report file name.
- In the Description field, enter a report description.
- Click Preview to preview the report. Click Post to generate the report.