Local Government Funds
State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year
The amount allocated to each county undivided local
government fund from the state local government fund 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
Ohio's state local government fund 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 1999, the
fund received revenue from the five tax sources as follows:
$306.4 million from the personal income tax, $222.3 million
from the sales tax, $47.0 million from the corporate
franchise tax, $31.1 million from the use tax, and $29.0
million from the public utility excise tax. In addition,
$29.5 million was transferred to the state local government
fund from the income tax reduction fund.
In addition to the revenues received from the state local
government fund, each county undivided local government fund
also received five-eighths of the taxes paid by dealers in
intangibles in the county. These combined revenues are then
distributed by the County Budget Commission 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.
Approximately $664.4 million was distributed from the state
local government fund in 1999, with $57.4 million distributed
directly to municipalities levying income taxes and $607.0
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 state local
government fund and the tax on dealers in intangibles. The
total amount distributed from the state fund was $607.0
million in 1999 while the tax on dealers in intangibles
amounted to $10.7 million. Thus, the total amount of all
county undivided local government funds was $617.7 million.
LG-2 shows the amount distributed to each municipality in
1999 based on its income tax collections in 1997. Of the
$57.4 million total, $53.7 million was distributed to cities
and the remainder to villages.
Figures shown were compiled from records of the Ohio
Department of Taxation.