Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
Ohio's local government fund is composed of 4.2% of the
revenue from state sales tax, use tax, personal income tax,
public utility tax, and corporate franchise tax. In calendar
year 2001, the fund received revenue from the five tax
sources as follows: $342.6 million from the personal income
tax, $263.6 million from the sales & use tax, $41.5
million from the corporate franchise tax, and $32.1 million
from the public utility excise tax. In addition, $25.6
million was transferred to the state local government fund
from the income tax reduction fund.
In fiscal years 2002 and 2003, the state budget bill (House
Bill 94) temporarily suspended the statutory allocation
formula to counties and municipalities beginning with the
July 2001 distributions. From July 2001 through December
2001, each county and municipality received the same amount
it received in July 2000 through December 2000.
Approximately $720.9 million was distributed from the local
government fund and the dealer in intangibles tax in 2001,
with $62.4 million distributed directly to municipalities
levying income taxes and $658.5 million distributed to the 88
county undivided local government funds. The allocation of
the total between the municipal and county portions is
determined using a statutory formula (Section 5747.50, Ohio
The amount allocated to each county undivided local
government fund from the local government fund is determined
according to a complex statutory formula (Section 5747.501,
Ohio Revised Code). The amount allocated to each municipality
which levies an income tax is determined in proportion to its
share of all municipal income tax collections in the State
(Section 5747.50, Ohio Revised Code).
In addition to the revenues received from the local
government fund, each county undivided local government fund
also received five-eighths of the taxes paid by dealers in
intangibles in the county. These combined local government
fund and dealer in intangibles tax revenues are then
distributed by county budget commissions to eligible
subdivisions within the county (municipalities, townships,
park districts, and the county government itself). For the
distribution of these funds among the subdivisions, see
tables LG-3 and LG-5.
Table LG-1 shows the total revenues received by each county
undivided local government fund from both the local
government fund and the tax on dealers in intangibles. The
total amount distributed from the fund in calendar year 2001
was $642.6 million while the tax on dealers in intangibles
amounted to $15.9 million. Thus, the total amount of all
county undivided local government funds was $658.5 million.
LG-2 shows the amount distributed to each municipality in
2001 based on its income tax collections in 1999. Of the
$62.4 million total, $58.2 million was distributed to cities
and the remainder to villages.
Figures shown were compiled from records of the Ohio
Department of Taxation.