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Senate committee advances plan to shift 4 cents of sales tax distribution toward local governments
Summary
Senate File 60 would change the split of the 4-cent state sales tax so that a larger share (35% rather than 31%) is returned to local governments, reducing the state general-fund share from 69% to 65%; senators debated tradeoffs with state obligations and existing local distributions.
Senate File 60, a bill that reallocates how the states 4-cent sales and use tax is split between the general fund and local governments, passed the Committee of the Whole after extended floor debate over revenue, backfills and long-term fiscal policy.
What the bill would do: under current law the 4-cent statewide sales tax distributes approximately 69% to the state general fund and 31% to local communities (with one percentage point retained for administrative costs). The bill would move the distribution to 65% general fund and 35% local share, effectively directing roughly an additional $38.6 million per fiscal year to local governments beginning in fiscal 2026…
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