House Bill 408 Summary

• Creates new definitions section (63-3637) defining "per capita distribution" based on U.S. Census Bureau population data and "revenue-sharing account" for quarterly sales tax distributions to cities and counties.

• Revises city distribution formula under subsection (10)(a) to establish a base amount from fiscal year 2020 quarterly distributions and implement per capita distribution calculations, replacing the previous 50/50 split between population and market value formulas.

• Increases county distribution percentage from 28.2% to 47.1% of the revenue-sharing account while adjusting city distribution from 28% to 45.2%, with new provisions for distribution adjustments based on revenue changes and per capita equity.

• Corrects code references in section 63-316 to reference subsections 63-3638(10)(eb) and (10)(dc) instead of (cb) and (dc) for withholding state tax commission assessment program costs.

• Effective date of July 1, 2020 for implementation of the new revenue-sharing account and distribution formulas.