Present law requires the commissioner of revenue to deposit promptly in state depositories all moneys received by the commissioner, and all such moneys must be earmarked and allocated according to law. Present law provides several special allocations of moneys so collected. One such special allocation requires the commissioner to pay into the state general fund and allocate exclusively for general state purposes all revenue generated from the sales and use tax rate increasing from 6 to 7%, and from the tax levied at the rate of 2.75% on any single article of personal property between $1,600 and $3,200. This bill removes from these provisions the requirement for the commissioner to deposit the revenue generated from the sales and use tax rate increase from 6 to 7% into the general fund for general purposes. This bill creates a special allocation that requires, of the revenue generated from the sales and use tax rate increase from 6 to 7%, 4.6030% to be apportioned to several incorporated municipalities within this state to be allocated and distributed to them as presently required by the commissioner. The rest of the revenue, 95.3970%, must be paid into the state general fund and allocated exclusively for general state purposes.

Statutes affected:
Introduced: 67-6-103, 67-6-103(c)