personal property tax

personal property taxR E F O R M I N G

E X P I R E D

THE PLAN

N E W G FR E V E N U E

S TAT E U S E TA XT RA N S F E

R T O LO C A L S

CREDITS GENERALFUND

STATE USE TAX

LOCALUSE TAX

cannot exceed 6% STATE + USE TAX

LOCAL

under the Constitution

- out of state purchases- telecom - lodging- 4¢ general fund 2¢ school aid fund

WHAT IS USE TAX?

Use tax is sales tax on:

100%

POLICEFIRE

AMBULANCE

JAILS

K-12/ISDOPERATIN

G AND DEBT LOSS

LOST TIFCAPTURE EVERYTHI

NGELSE

80%

REIMBURSEMENT

The legislature shall appropriate an amount to cover all debt loss

REIMBURSEMENT

FY 2014 AND 2015

Calculate essential services loss – up to 100% of that amount made up through locally levied Essential Services Assessment (ESA)Calculate remaining loss amount, not including loss eligible for reimbursement through ESA – 80% of that amount made up through use tax distribution

LOCAL TAXING UNITBasic operating loss - 100% of that amount made up through SAFCalculate debt loss and hold harmless/out-of-formula operating loss – 100% of that amount made up through use tax distributionCalculate sinking fund/recreational mill loss – 80% of that amount made up through use tax distribution

LOCAL SCHOOL DISTRICTISD

Calculate debt/operating loss – 100% of that amount made up through use tax distribution

FY 2016 AND BEYOND

Total PPT Cut$576.6 M

Total Reimbursement

$511.7 M

UNREIMBURSED EXEMPTIONS VS. TOTAL LOCAL REVENUEFY 2023 (EST)

Total General Revenue$47.4 B

Amount Not Reimbursed$64.9 M

0.137% of General Revenue

$400

$200

$0

$600

2033

PROJECTED GROWTH OF EXEMPT PP REVENUE VS. USE TAX REVENUE 2023-2033

Projected growth in Use Tax revenue:

$582 M

Projected growth in revenue

from exempt personal property, assuming no

exemption: $30.3 M

2023

personal property taxR E F O R M I N G