HB 54 CREATE ALL CITIES & COUNTIES FUND

Rep Larry R Scott

Actions: HPREF [2] HTRC/HAFC-HTRC

Scheduled: Not Scheduled

 House Bill 54 (HB 54) creates the All Cities and Counties Fund and distributes Gross Receipts Tax revenue to the fund. 

 House Bill 54 (HB 54) creates a revenue sharing fund, All Cities and Counties Fund (fund). 
A portion of Gross Receipts Tax (GRT) will be distributed to local governments based on the municipality and county population relative to the state population and fund balance and Equalized Gross Receipts Tax Revenue (EGRTR) of all counties by January 1 each year. 

The calculation:

municipal (or county) population * [0.7 * (fund balance/state population) + 0.3 * (((county EGRTR/all county EGRTR) * fund balance)/county population)]

Taxation and Revenue Department will determine the amounts based on the revenue sharing formula to transfer. 

A distribution in the amount of 8% of net receipts of GRT will be made to the fund.

The effective date of HB 54 is July 1, 2024 if passed and signed into law.