Tax Data Series

Local Government Funds

State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year 1993

The amount allocated to each county undivided local government fund from the state 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).

Ohio's state local government fund is composed of 4.6 percent of the revenue from state sales, use, personal income, public utility, and corporate franchise tax. However, the budget bill for the 1994 - 1995 biennium (House Bill 152, effective July 1, 1993) temporarily lowered the state local government fund's percentage share of the five tax sources from 4.6 percent to 4.2 percent. This lower percentage share will be in place from July 1, 1993 through June 30, 1995. House Bill 152 also required that the total amount distributed to county undivided local government funds from the state local government fund in calendar year 1993 distribution that was certified by the Tax Commissioner in December, 1992, which was $410,557,100. (The direct distribution to municipalities was not subject to this minimum "guarantee".)

About $445.8 million was allocated from the state local government fund in 1993, with $35.3 million distributed directly to municipalities levying income taxes and $410.6 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 Revised Code).

In addition to the revenues received from the state 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 revenues are then distributed by the County Budget Commission 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 state local government fund and the tax on dealers in intangibles. The total amount distributed from the state fund was $410.6 million in 1993 while the tax on dealers in intangibles amounted to $8.0 million. Thus, the total amount of all county undivided local government funds was $418.5 million. LG-2 shows the amount distributed to each municipality in 1993 based on its income tax collections in 1991. Of the $35.3 million total, $33.2 million was distributed to cities and the remainder to villages.

Figures shown were compiled from records of the Ohio Department of Taxation.