This document outlines the origins and purpose of entitlement share programs, focusing on the institutionalization of reimbursements for legislative property tax reductions and the simplification of revenue exchanges between state and local governments. It details the tax reductions made by the 1999 legislature and the ongoing reimbursements meant to prevent immediate property tax shifts. Additionally, it discusses the simplification of revenue collection and distribution processes, both pre- and post-2001, highlighting the role of state and county governments in managing various sources of revenue.
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Presentation Transcript
ENTITLEMENT SHARE ORIGINS PURPOSE 1. TO INSTITUTIONALIZE THE REIMBURSEMENTS FOR LEGISLATIVE PROPERTY TAX REDUCTIONS 2. TO SIMPLIFY REVENUE EXCHANGES BETWEEN STATE AND LOCAL GOVERNMENTS
TAX REDUCTIONS THE 1999 LEGISLATURE MADE THE FOLLOWING PROPERTY TAX RATE REDUCTIONS ELECTRICAL GENERATION 12% --6% TELECOM PROPERTY 12%--6% BUSINESS EQUIPMENT 6%--3% LIVESTOCK PHASE OUT 4%--0 STATE REIMBURSED THESE CUTS (approx. $76 million)
REIMBURSEMENTS REIMBURSEMENTS WERE DOLLAR FOR DOLLAR TO ALL TAXING JUSISDICTIONS REIMBURSEMENTS WERE MEANT TO BE ONGOING (previous business equipment reimbursements were phased out over 10 years REIMBURSEMENTS WERE MEANT TO PREVENT IMMEDIATE PROPERTY TAX SHIFTS
SIMPLIFICATION MANY SOURCES OF REVENUE WERE COLLECTED AND TRANSFERRED BETWEEN STATE AND LOCAL GOVERNMENTS STATE COLLECTED SOME REVENUES AND DISTRIBUTED THEM TO LOCAL GOVT. AND SCHOOLS COUNTIES COLLECTED SOME REVENUES AND DISTRIBUTED THEM TO SCHOOLS,LOCAL GOVT. AND STATE
REVENUE COLLECTION PRE 2001 STATE COLLECTED GAMING REVENUE ALCOHOL TAXES FINANCIAL INSTITUTIONS STATE ALSO MADE PILT PAYMENTS TO JURISDICTIONS THAT HAD OVER 6% STATE LAND
AFTER 2001 COUNTY COLLECTED MOTOR VEHICLE COUNTY COLLECTED DISTRICT COURT FEES ALL MONEY WAS SENT TO STATE STATE REDISTRIBUTED MONEY TO LOCAL GOVTS. AND SCHOOLS AS ENTITLEMENT SHARE
AFTER 2001 STATE STILL COLLECTED GAMING REVENUE ALCOHOL REVENUE FINANCIAL INSTITUTION FEDERAL PAYMENTS STATE DISTRIBUTED ENTITLEMENT SHARE PAYMENTS (ALMOST $200 MILLION)
AFTER 2001 COUNTY COLLECTED MOTOR VEHICLE COUNTY COLLECTED DISTRICT COURT FEES ALL MONEY WAS SENT TO STATE STATE REDISTRIBUTED MONEY TO LOCAL GOVTS. AND SCHOOLS AS ENTITLEMENT SHARE
OTHER CHANGES STATE ASSUMED DISTRICT COURTS AND ENTITLEMENTS TO COUNTIES WERE REDUCED STATE ASSUMED SOME HIGHWAYS THAT WERE LOCALLY MAINTAINED STATE ASSUMED WELFARE IN ALL COUNTIES STATE TOOK OVER PUBLIC DEFENDERS
GROWTH FACTOR SEPARATE GROWTH FACTORS WERE DEVELOPED FOR EACH LEVEL OF LOCAL GOVERNMENT BASED ON THE HISTORIC GROWTH OF THE REVENUE CONTAINED IN THEIR ENTITLEMENT PAYMENT CITIES-BASED ON GAMING, ALCOHOL, VEHICLES COUNTIES BASED ON VEHICLES, GAMING OTHER SCHOOLS BASED ON VEHICLES FINANCIAL INST.
RECENT CHANGES ADDITIONS MADE FOR BUSINESS EQUIPMENT REDUCTIONS IN 2011 AND 2013 GROWTH FACTORS SUSPENDED OR CHANGED SCHOOL BLOCK GRANTS DIVERTED
