Tax Data Series

Local Government Funds

State & Local Government Funds
Distributions to Counties and Municipalities, Calendar Year 2005

Ohio’s 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.

However, recent state budget bills (House Bill 94, 95 and 66) temporarily suspended the statutory funding formula to counties and municipalities beginning with the July 2001 distributions. In calendar year 2005, each county and municipality received the same amount it received in calendar year 2004.

Approximately $672.5 million was distributed from the local government fund and the dealer in intangibles tax in 2005, with $58.1 million distributed directly to municipalities levying income taxes and $615.4 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).

The amount allocated to each county undivided local government fund from the 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 Code).

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. These combined local government fund and dealer in intangibles tax revenues are 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.

Table LG-1 shows the total revenues received by each county undivided local government fund from both the local government fund and the tax on dealers in intangibles. The total amount distributed from the fund in calendar year 2005 was $603.7 million while the tax on dealers in intangibles amounted to $11.7 million. Thus, the total amount of all county undivided local government funds was $615.4 million. LG-2 shows the amount distributed to each municipality in 2005. Of the $58.1 million total, $54.2 million was distributed to cities and the remainder to villages.

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