‘ 1. Local sales tax increment. Beginning with fiscal year 2014-15, the State Tax Assessor shall, based on available taxable retail sales data as derived from state sales tax collections, excluding taxable retail sales data for lodging and restaurants, determine the amount of sales tax revenue and the amount of the local sales tax increment for each fiscal year that is attributable to each municipality and the unorganized territory under Title 36, Part 3. For the purposes of this section, "local sales tax increment" means 5% of the increase in revenue attributable to a municipality or the unorganized territory under Title 36, Part 3 over the amount attributable to the municipality or the unorganized territory in fiscal year 2014-15 and every 4th year thereafter.’
Amend the bill in section 1 in §5686 by striking out all of subsection 1 (page 1, lines 4 to 10 in L.D.) and inserting the following:
Amend the bill in section 1 in §5686 in subsection 3 by striking out all of the last sentence (page 1, lines 26 to 29 in L.D.) and inserting the following: ' A municipality or the fiscal administrator of the unorganized territory shall reduce the property tax levy in an amount equal to the payments received under this section in the fiscal year that the local sales tax increment revenue is received.'
Amend the bill by adding after section 1 the following:
‘Sec. 2. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides a one-time General Fund appropriation to the Bureau of Revenue Services for administrative and technology costs associated with administering a local sales tax increment disbursement program.
| GENERAL FUND | 2013-14 | 2014-15 |
|
All Other
|
$54,000 | $0 |
 |
|
|
| GENERAL FUND TOTAL | $54,000 | $0 |
SUMMARY
This amendment requires the State Tax Assessor to determine the amount of the local sales tax increment based on available taxable retail sales data as derived from state sales tax collections excluding data reported in the categories of lodging and restaurants. The bill requires the State Tax Assessor to gather and maintain information that demonstrates the amount of revenue and the amount of local sales tax increment for each fiscal year that is attributable to each municipality and the unorganized territory. The amendment requires that the base year for determining the local sales tax increment be reset every 4 years. It clarifies that the municipality or fiscal administrator of the unorganized territory must use the local sales tax increment payments received to reduce property taxes.
The amendment also adds an appropriations and allocations section.
FISCAL NOTE REQUIRED
(See attached)