(A) The Town of Walkerton creates and establishes the Walkerton LOIT Special Fund effective May 16, 2016 for the purpose of receiving LOIT special funds and spending same in accordance with applicable law.
(B) Senate Bill 67:
(1) 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 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. 2016-2, passed 5-16-2016)