Government of Nova Scotianovascotia.ca
gov.ns.caGovernment of Nova Scotia Nova Scotia, Canada
 
Municipal Affairs
Text Size:  A+ A-

Indicator Definitions

Each indicator has a technical definition that describes how it was calculated. The definition explains the meaning of key terminology and what the indicator is measuring. It provides information to consider when interpreting the indicator results and other indicators that measure similar aspects of a municipality's performance.

Select an indicator to display the technical definition:

 

Uncollected Taxes (%)

Threshold

10% or less

Formula

Uncollected taxes ÷ Total taxes billed in current fiscal year

Technical Definition

Uncollected taxes: Total value of taxes, area rates, special assessments, and sewer billed but not yet collected for the current and all previous fiscal years, less any asset valuation allowances

• FIR Schedule D: Line 1032000

Total taxes billed in current fiscal year: Total value of all taxes, area rates, special assessments, and sewer for the current fiscal year including taxes billed for appropriations to regional school board and revenue collected for other governments/agencies

• For March 31, 2012 year: FIR Schedule F – Subtotal Lines 1011110 to 1011190 plus Lines 1011200 and 1011410

• For March 31, 2013 year: FIR Schedule F - Subtotal of Lines 1011110 to 1011190 plus Lines 1011410 and 1015700

• For March 31, 2014 year: FIR Schedule F - Subtotal of Lines 1011110 to 1011190 plus Line 1015700

• For March 31, 2015 year: FIR Schedule F – Subtotal of Lines 1011110 to 1011192 plus Line 1015700

Rationale

Municipalities utilize a number of tools to ensure that property taxes are collected on a timely basis. Failure to collect taxes can significantly impact actual revenue, cash flow, and thereby could hinder their ability to provide services.

It is important to identify increasing uncollected taxes early in order to improve the municipality's collections process. The potential lost revenue could threaten the financial health of the municipality.

Interpretations

A low percentage indicates the municipality is adequately managing tax revenue collection.

A high percentage may indicate the municipality is experiencing difficulty monitoring and collecting overdue tax accounts.

Because the amount of uncollected taxes can accumulate over several years, it is possible to exceed 100% uncollected taxes in situations of extreme financial distress. While municipalities must be diligent with collecting revenue, they must also be cognizant of their economic climate. High levels of unemployment or a high tax burden ratio may contribute to high scores on this indicator.

Data Source(s)

  • Municipal Financial Information Return (FIR) - General Operating Fund (non-consolidated)

Related Indicator(s)

  • Residential Tax Effort
  • Liquidity
  • 3-Year Change in Tax Base
  • Change in Population
  • Median Household Income (MHI)