How should property taxes be accounted for in the government-wide financial statements?
Asset Governments should recognize assets from imposed nonexchange revenue transactions in the period when an enforceable legal claim to the assets arises or when the resources are received, whichever occurs first. For property taxes, the date when an enforceable legal claim to the taxable property arises generally is specified in the enabling legislation (e.g., lien date). (Codification of Governmental Accounting and Financial Reporting Standards, Section N50.114) Municipalities should record a receivable and related deferred revenue at the lien date (see question 4 above). Generally on this date, municipalities may not have information available to record the actual levy and therefore, an estimate is used. Revenue Governments should recognize revenues from property taxes, net of estimated refunds and estimated uncollectible amounts, in the period for which the taxes are levied, even if the enforceable legal claim arises or the due date for payment occurs in a different period. Resour
