(A) A special LOIT Distribution Fund is hereby created to receive money from the special distribution of LOIT funds.
(B) That the moneys deposited in the special LOIT may be used as directed in Senate Enrolled Act 67 of the 2016 Legislative session as follows:
(1) Local income tax distributions. Provides for a supplemental distribution of local income taxes when the balance in a county’s local income tax trust account exceeds 15% (rather than 50% under current law) of the certified distributions to be made to the county;
(2) Specifies the accounting, allocation method, and distribution requirements for supplemental distributions;
(3) Requires before May 2016 a one time special allocation of the balance in a county’s trust account as of December 31, 2014;
(4) Provides that a taxing unit’s allocation amount is to be determined in the same manner as a supplemental distribution would have generally been determined under the former income taxes;
(5) Requires a special distribution of the allocation amount;
(6) Provides that at least 75% of the distributions made to a county, city, or town must be:
(a) Used exclusively for local road construction, maintenance, or repair, or a capital projects for aviation, including capital projects of an airport authority; or
(b) Deposited in a rainy day fund and later used for those purposes;
(7) Provides that any remaining distribution to a county, city, or town may be used for any purposes of the county, city, or town; and
(8) Requires the allocation amount for other taxing units to be deposited in the taxing unit’s rainy day fund.
(Ord. 2016-G-05, passed 6-6-16)