Distributions - Commercial Activity Tax
The Commercial Activity Tax (CAT) is a business privilege tax
measured by a business’ gross receipts. The CAT was phased-in
over a five year period starting with tax year 2005. The CAT
replaces the corporate franchise and tangible personal
property taxes. As a result of the phase-out of the tangible
personal property tax, a distribution was created to
reimburse schools and local governments for revenue losses.
For State Fiscal Year FY 2012, the allocation, after the
0.85% distribution to the administration fund: 25.0% to the
state's General Revenue Fund, 52.5% to School District
Tangible Property Tax Replacement Fund (Fund 7047) and 22.5%
to the Local Government Tangible Property Tax Replacement
Fund (Fund 7081). In FY 2013 this changes to 50.0% to the
state's General Revenue Fund, 35.0% to Fund 7047 and 15.0% to
Fund 7081. The Department of Education reimburses the schools
and the Department of Taxation reimburses local governments.
Payments are made through the county auditors.