SB1550 Summary

• Changes the distribution formula for transfers from the General Revenue Fund to the Local Government Distributive Fund, effective August 1, 2019, from a combined rate of 6.06% (individuals) and 6.85% (corporations) to a flat 10% of net revenue realized from income taxes.

• Defines "net revenue realized" to include revenue deposited in the General Revenue Fund, Education Assistance Fund, Income Tax Surcharge Local Government Distributive Fund, Fund for the Advancement of Education, and Commitment to Human Services Fund, minus refunds paid to taxpayers for overpayments.

• Requires direct deposit of Local Government Distributive Fund transfers into that fund as revenue is realized, rather than in lump monthly transfers (effective July 6, 2017).

• Reduces total revenue and deposits attributable to State fiscal year 2018 by 10% and State fiscal year 2019 by 5% as temporary measures.

• Maintains existing provisions for deposits into the Income Tax Refund Fund, Education Assistance Fund, Fund for the Advancement of Education, Commitment to Human Services Fund, and Tax Compliance and Administration Fund.