Tax Data Series

Local Government Funds

State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year 1996

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 4.2 percent of the revenue from state sales tax, use tax, personal income tax, public utility tax, and corporate franchise tax. The budget bill for the 1996 - 1997 biennium (House Bill 117, effective July 1, 1995) permanently set the state local government fund's percentage share of the five tax sources at 4.2 percent. In 1996, the fund received revenue from the five tax sources as follows: $252.4 million from the personal income tax, $183.5 million from the sales tax, $49.7 million from the corporate franchise tax, $30.1 million from the use tax, and $28.4 million from the public utility excise tax.

Approximately $543.8 million was distributed from the state local government fund in 1996, with $45.8 million distributed directly to municipalities levying income taxes and $498.0 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 loca l 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 $498.0 million in 1996 while the tax on dealers in intangibles amounted to $9.6 million. Thus, the total amount of all county undivided local government funds was $507.6 million. LG-2 shows the amount distributed to each municipality in 1996 based on its income tax collections in 1994. Of the $45.8 million total, $42.9 million was distributed to cities and the remainder to villages.

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