How to Recalculate Payments on Adjustments with Tax Bills

How to recalculate or prorate paid Discount or paid Interest with Tax Bill Adjustments

Refund including paid Discounts or paid Interest

• Maryland Property Tax Billing

• Tax Bills

• Adjustments

• Bill Refund Processing

Tax Bill Adjustments do not recalculate or reallocate prior payment activity automatically. Paid Discount and Interest remain static to how they are originally paid.

The Recalculate payments on adjustment box in the Tax Bills program was put in place to recalculate historical data. Its intent was to recalculate prior paid discount or interest to alleviate having to manually reverse payment activity. When an adjustment is entered for a bill, selecting this box will reverse all payment activity on the bill and reapply it again automatically, as if the adjustment had been there all along.

Example: $1000 bill was paid early and received $10 discount. Adjustment was later added to reduce the bill to $500. Paid discount would then be recalculated to $5.

Prior to this added functionality, the other option was to manually remove the payment, add the adjustment, and then reapply the payment. They would end up with the same History either way. 

There could be one other manual option which is to add a discount fee charge to the bill to account for the difference. If they had a $10 discount on the original payment, they could create a charge fee of discount recapture of $5, but they would need to manually calculate the discount and the charge would show up on the bill as a new line