House Bill (H)

Authored by

DIGEST

Supplemental distributions of local income tax. Requires the budget agency, before May 1, 2016, to make supplemental distributions from a county's adjusted gross income tax trust account, county option income tax trust account, or county economic development income tax trust account equal to: (1) the amount of the balance in the county trust account on December 31, 2014, as determined by the budget agency; minus (2) any supplemental distribution made under current law to the county in January 2016. Provides that the office of management and budget (OMB) and the department of local government finance (DLGF) shall determine the allocation Supplemental distributions of local income tax. Requires the budget agency, before May 1, 2016, to make supplemental distributions from a county's adjusted gross income tax trust account, county option income tax trust account, or county economic development income tax trust account equal to: (1) the amount of the balance in the county trust account on December 31, 2014, as determined by the budget agency; minus (2) any supplemental distribution made under current law to the county in January 2016. Provides that the office of management and budget (OMB) and the department of local government finance (DLGF) shall determine the allocation of the supplemental distribution, based on that part of the balance in the county's trust account that would be distributed to the county, city, or town. Provides that the county auditor, before June 1, 2016, shall distribute only to a county, city, or town an amount equal to the allocation amount determined for the county, city, or town by the OMB and the DLGF. Provides that at least 75% of the distributions made to a county, city, or town must be: (1) used exclusively for local road construction, maintenance, or repair, or capital projects for aviation, including capital projects of an airport authority; or (2) deposited in a rainy day fund. Provides that any remaining distribution to a county, city, or town may be used for any purposes of the county, city, or town. Provides that if the budget agency determines that the balance in a county's local income tax trust account exceeds 25% (rather than 50%, under current law) of the certified distributions to be made to the county in the ensuing year, the budget agency shall make a supplemental distribution to the county. ... View more