Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
Approximately $757.5 million was distributed from the local
government fund (LGF) and the dealer in intangibles tax (DIT)
in 2008, with $58.1 million distributed directly to
municipalities levying income taxes and $699.4 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
2008 was $687.5 million while the DIT amounted to $11.9
million. Thus, the total amount of all county undivided local
government funds was $699.4 million. LG-2 shows the amount
distributed to each municipality in 2008. Of the $58.1
million total, $54.0 million was distributed to cities and
the remainder to villages.
In calendar year 2008, a new funding mechanism was instituted
for the state’s LGF. The LGF now receives a designated
percentage of total state General Revenue Fund (GRF)
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 will now receive 3.68 percent of prior-month tax
revenues. As a part of these changes, the state and
county undivided local government revenue assistance funds
(LGRAF) were repealed effective in calendar year 2008.
In essence, the state LGRAF was consolidated into the state
LGF. For this reason, a large observable increase in
LGF distributions occurred in calendar year 2008 relative to
calendar year 2007 LGF distribution levels.
In addition to the revenues received from the LGF, each
county undivided LGF 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.
Figures shown were compiled from records of the Ohio
Department of Taxation.