H97 - 2015 Appropriations Act, Sec. 32.19: Local Sales Tax Distribution (SL 2015-241)

Overview: Sec. 32.19 of S.L. 2015-241, as amended by Sec. 10.1(e1) of S.L. 2015-268, carves out a portion of the local option sales tax revenue and distributes that amount to the counties whose revenue-raising capacity from the local option sales taxes is less than it would be if the distribution of the revenue from the taxes was made on a per capita basis. The carve-out amount to be distributed in fiscal year 2016-2017 is $84.8 million. This amount is to be adjusted each fiscal year thereafter based upon the annual percentage change in the 2-cent local option sales taxes collected in the previous fiscal year. Seventy-nine counties will receive an allocation from the distribution. A county's allocation percentage is set by statute. The amount allocated to a county must be shared with the municipalities in that county. The General Assembly must periodically review the allocation percentages.

This section becomes effective July 1, 2016, and applies to local option sales and use taxes collected on or after that date and distributed to counties and cities on or after September 1, 2016.