House Bill 140

Chair's Name: Larry O’Neal

Committee: Ways & Means

House Sponsor: Wendell Willard

HB 140 focuses on setting out a new process for local governments to renegotiate distribution certificates for joint county and municipal sales taxes after the decennial census. If an agreement cannot be reached, the parties must first submit to nonbinding arbitration or mediation. If an agreement is not reached after 60 days, any of the necessary parties can file a petition in the superior court seeking to resolve the issues remaining in dispute. The judge or senior judge must be from a circuit outside of the county where the dispute is taking place. The parties must submit offers to the visiting or senior judge, who will conduct the hearings necessary. The judge must adopt one of the submitted offers in his order and support the decision with a finding of facts. The judge’s decision can only be appealed based on certain circumstances.

This bill comes to the Floor under the Structured Rule.

Chairman O’Neal’s Opinion of the legislation:

Currently, should a renegotiation agreement on distributions of joint county and municipality sales taxes not be reached by the second year following a decennial census, the distribution certificate expires and the local governing authorities do not receive the tax proceeds until the distribution certificate is renegotiated. 

HB 140 addresses the need to set out a definitive plan to expeditiously resolve intergovernmental impasse.  This bill will allow for a continuance of a distribution agreement in the event parties do not agree during renegotiations, and to provide for a judicial determination should the parties involved not be able to reach an agreement after sixty days of non-binding arbitration or mediation. 

This Legislation:

•      Reduces the Size of Government by providing an instant method of dispute resolution, mitigating other expensive preliminary prodedures. 

•      Reduces the Tax Burden on our Citizens because under this bill, local governing authorities will receive the tax proceeds under the current distribution certificate until distribution is renegotiated rather than the distribution certificate expiring if an agreement is not reached, thus eliminating the need to generate revenues to fund government from additional taxing sources.

•      Increases Personal Responsibility by forcing intergovernmental negotiations to be fair and void of political prejudice.