BIC has received additional information on one of the components that we reported on at the end of the 2016 legislation session. As described in BIC Matters on March 10, the legislature passed Senate Bill 67 which releases back to local units already-collected local option taxes that have been held in reserve by the state. The new law requires that of the amounts released to counties, cities and towns, 75% must be used for road, bridge or airport improvements or deposited into the rainy day fund. If the unit deposits the funds into the rainy day fund, then it must abide by the restricted uses when it takes the funds out of the rainy day fund. We have received a report showing preliminary estimated total allocations to each local unit (click here for report). The state is required to make the distributions to local units by May 1, 2016.
If you have any questions, please call the BIC office at (317) 634-4774.