Tax Data Series

Local Government Funds

State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year 2008

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  As a part of these changes, the state and county undivided local government revenue assistance funds (LGRAF) were repealed effective in calendar year 2008.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.