In the past the only shortfalls County Extension Districts had in their property tax askings were due to people not paying their taxes on time. These show up later as Delinquent taxes as taxpayers pay their past due taxes.

In all budget years since FY01, the "Gross Tax Askings" have been broken into the Property Tax portion and Utility Tax Replacement Excise Tax portion. Given this situation and the recent budget problems with the State of Iowa, we now have several reasons for shortfalls that will not be made up:

* Shortfall Due to Utility Excise Tax Appeals

This shortfall is due to a utility company in your county appealing their property valuation and winning the appeal. You should have been notified of this reduction in a letter from your county's treasurer or auditor. This is permanent, non-refundable reduction for the present year. Counties that are at their maximum tax asking are most affected in the present year because the maximum tax asking has effectively been lowered and there is no way to recoup that loss.

* Shortfalls Due to State Budget cuts

These shortfalls are due to the state cutting the state budget. Several tax replacements come from the state directly, and will be permanently cut from the present budget by the announced amount. The Chapter 405.A.4 State allocation and the Machinery and Equipment replacement would be the largest amounts reduced or cut. You may have other credits against the current levy that will also be affected.

Why make a Negative Entry

You should not subtract the shortfall from the maximum tax asking available to you. Doing this will lower the property tax side of the levy.

Normally on Form CB-1 you would estimate your tax income for as what you expected when you budgeted last year. These shortfalls affect that and you may want to account for the known shortfalls.

If you are at your maximum statutory levy rate you will not be able to increase your Gross Tax Asking and you may want to account for the shortfall.

This will allow you to put your maximum statutory levy rate on Form 678 and account for the shortfall at the same time. This shortfall is effectively a reduction of the maximum statutory levy rate for any county budgeting at its maximum and will have to be made up with other income or costs will have to be cut.

How make a Negative Entry

Go to CB-1, Column E, line 17, 18, 19 or 20 (cell E26, E27, E28 or E29). Enter the amount as the dollar amount with a minus sign in front of it. Fill in Column B to describe the shortfall you are listing.

Go to CB-1, Column F, line 17, 18, 19 or 20 (cell F26, F27, F28 or F29). Enter the amount as the dollar amount with a minus sign in front of it. Fill in Column B to describe the shortfall you are listing.