Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
Approximately $674.4 million was distributed from the local
government fund (LGF) and the dealer in intangibles tax (DIT)
in 2007, with $58.1 million distributed directly to
municipalities levying income taxes and $616.3 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).
Table LG-1 shows the total revenues received by each county
undivided local government fund from both the LGF and DIT.
The total amount distributed from the fund in calendar year
2007 was $603.7 million while the DIT amounted to $12.6
million. Thus, the total amount of all county undivided local
government funds was $616.3 million. LG-2 shows the amount
distributed to each municipality in 2007. Of the $58.1
million total, $54.0 million was distributed to cities and
the remainder to villages.
In calendar year 2007, Ohio’s LGF was composed of 4.2% of the
revenue from state sales tax, use tax, personal income tax,
public utility tax, and corporate franchise tax.
However, state budget bills (House Bill 94, 95 and 66)
temporarily suspended the statutory funding formula to
counties and municipalities beginning with the July 2001
distributions. Due to provisions in House Bills 66 and 119,
each county and municipality received the same amount in
calendar year 2007 as it received in calendar year 2006.
In addition to the revenues received from the LGF, each
county undivided local government fund also received
five-eighths of the taxes paid by dealers in intangibles in
the county. These combined LGF and DIT revenues were 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.
Note: The recently enacted state operating budget bill for
the fiscal year 2008-2009 biennium (Am. Sub. H.B. 119, 127th
General Assembly) made landmark changes to the state’s
Local Government Fund. A new funding mechanism was
instituted. Beginning in calendar year 2008, the LGF
will receive a designated percentage of total state
General Revenue Fund tax revenues. Under prior statutory law,
the LGF received a share of specifically designated state tax
revenue sources, not total state GRF tax revenues.
Each month, the LGF shall receive 3.68 percent of prior-month
tax revenues. Other changes were also enacted; refer to
the 2007 edition of the Ohio Department of Taxation’s
Annual Report for more information.
Figures shown were compiled from records of the Ohio
Department of Taxation.