Tax Data Series

Local Government Funds

State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year 2007

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.