Tax Data Series

Local Government Funds

LOCAL GOVERNMENT REVENUE ASSISTANCE FUND
Amounts Distributed to Counties, Calendar Year 2002

Ohio’s local government revenue assistance fund began July 1, 1989. This fund is composed of 0.6 percent of revenue from the state sales tax, use tax, personal income tax, public utility excise tax, and corporate franchise tax.

However, in fiscal years 2002 and 2003, the state budget bill (House Bill 94) temporarily suspended this funding formula beginning with the July 2001 distributions. In calendar year 2002, each county received the same amount it received in calendar year 2001, except for reductions due to required reconciliation calculations

Approximately $95.8 million was distributed from the fund during calendar year 2002, a 4.9 percent decrease from 2001. This money was distributed to the 88 county undivided local government revenue assistance funds. Revenues from the five tax sources contributed to the fund as follows: $47.6 million from the personal income tax, $37.7 million from the sales & use tax, $5.9 million from the corporate franchise tax, and $4.6 million from the public utility excise tax.

Under statutory law (suspended in 2002 by the House Bill 94 provisions), the amount allocated to each county undivided local government revenue assistance fund is based upon the county’s population as a percentage of the total population for the state. The population is the more recent of either the latest federal estimated census figures or the latest decennial census figures that include population totals as of June 1 of the preceding year (Section 5747.61, Ohio Revised Code).

The revenues received from the state’s local government revenue assistance fund are distributed by county budget commissions to eligible subdivisions within the county (municipalities, townships, park districts, and county government itself). Table LG-6 shows the total revenues distributed to each county undivided local government revenue assistance fund in calendar year 2002.

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