10/17/07 LLGSF Distribution Update from the Ohio Department of Taxation
As a result of law changes enacted by the state operating budget that went into effect on July 1, 2007 (Am. Sub. HB 119), the calendar year 2007 monthly distributions from the state's local distribution funds remain "frozen" at their calendar year 2006 levels. That is, during each month of calendar year 2007 each county's undivided LLGSF will receive the same amount it received during the same month of calendar year 2006. This means the original CY 2007 county undivided LLGSF distribution estimates that the Ohio Department of Taxation issued in July 2006 are no longer valid. Specifically, the budget stipulates that the "freeze" will remain in effect for the remainder of CY 2007.
To confirm your distribution amounts for the remainder of CY 2007, refer to your county's undivided funds received in CY 2006 listed in spreadsheet.
The budget makes numerous local distribution fund changes starting in CY 2008. Beginning in that year, the "percentage of revenue" funding method goes back into effect, albeit on a new basis (using total GRF tax revenues) and with new funding percentages.
In the near future the Ohio Department of Taxation will provide information about the new local distribution fund monthly cash flow patterns expected beginning in CY 2008. A steady and predictable cash flow has been in place for the last few years due to each year's "freeze". However, because the "percentage of revenue" funding mechanism will go back into effect in CY 2008 and because the state's monthly tax revenue cash flow is now somewhat different than when the freeze first went into effect in FY 2002, there will be some significant month-to-month differences between, for example, the CY 2007 distributions and the CY 2008 distributions. More specific information on this issue will be provided during the coming weeks.
