This legislation changes the method of distribution of alternative ad valorem tax proceeds of apportionable vehicles. The state revenue commissioner will determine a benchmark amount and qualified jurisdictions will receive that amount.
This legislation was amended in committee to provide for a phase out of the benchmark over a five year period. It was also amended to delay the initial distribution set for April 1, 2015 until August 1, 2015 to give DOR time to adjust their system for the new formula.
County Impact: This legislation prevented 48 counties from losing money on their April 1 IRP distribution by pushing the distribution to August 1, 2015 and providing a benchmark that ensures each county will receive the amount they received in 2013 at a minimum. This legislation also changed the formula to an industry strength model that is more equitable to counties and thereby reducing the potential for lost revenue in the future.
