Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
Ohio’s Local Government Fund (LGF) is composed of 4.2% of the
revenue from state sales tax, use tax, personal income tax,
public utility tax, and corporate franchise tax. In calendar
year 2002, the fund received revenue from the five tax
sources as follows: $334.9 million from the personal income
tax, $263.6 million from sales & use taxes, $41.5 million
from the corporate franchise tax, and $32.1 million from the
public utility excise tax.
In fiscal years 2002 and 2003, the state budget bill (House
Bill 94) temporarily suspended the statutory allocation
formula to counties and municipalities beginning with the
July 2001 distributions. From January 2002 through December
2002, each county and municipality received the same amount
it received in January 2001 through December 2001, except for
reductions to the March 2002 distribution ($5.5 million) and
the July 2002 distribution ($29.3 million) to ensure that no
more was distributed in fiscal year 2002 than would have been
distributed had percentage based (4.2%) funding been in
In addition to the revenues received from the local
government fund, each county undivided local government fund
also received five-eighths of the taxes paid by dealers in
intangibles in the county.
Approximately $681.6 million was distributed from the LGF and
the dealer in intangibles tax in 2002, with $59.0 million
distributed directly to municipalities levying income taxes
and $622.6 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).
The amount allocated to each county undivided local
government fund from the LGF is determined according to a
complex statutory formula (Section 5747.501, Ohio Revised
Code). The amount allocated to each municipality which levies
an income tax is determined in proportion to its share of all
municipal income tax collections in the state (Section
5747.50, Ohio Revised Code).
The combined local government fund and dealer in intangibles
tax revenues are 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.
Table LG-1 shows the total revenues received by each county
undivided local government fund from both the LGF and the tax
on dealers in intangibles. The total amount distributed from
the fund in calendar year 2002 was $611.3 million while the
tax on dealers in intangibles amounted to $11.2 million.
Thus, the total amount of all county undivided local
government funds was $622.6 million. Table LG-2 shows the
amount distributed to each municipality in 2002 based on its
income tax collections in 2000. Of the $59.0 million total,
$54.9 million was distributed to cities and the remainder to
Figures shown were compiled from records of the Ohio
Department of Taxation.