5 §1514. Tax Adjustment Reserve Fund
Title 5: ADMINISTRATIVE PROCEDURES AND SERVICES
Part 4: FINANCE
Chapter 141: GENERAL PROVISIONS
§1514. Tax Adjustment Reserve Fund
1. Tax Adjustment Reserve Fund established. There is established a Tax Adjustment Reserve Fund which shall be maintained for the exclusive purpose of mitigating the impact of changes in individual and corporate income tax collections by the state occurring as a consequence of the State's conformity to the provisions of the Internal Revenue Code of 1986.
[ 1987, c. 4, §1 (NEW) .]
2. Transfers to the Tax Adjustment Reserve Fund. Notwithstanding any other provision of law, the State Controller shall transfer to the Tax Adjustment Reserve Fund, without deductions, that portion of undedicated General Fund revenues which is jointly certified by the State Budget Officer and the State Tax Assessor to be directly attributable to increased corporate or individual income tax collections resulting from conformity to the Internal Revenue Code of 1986 through the period ending June 30, 1988. The State Auditor shall verify that the amount transferred and the process used to issue rebate checks are reasonable.
[ 1987, c. 832, §1 (AMD) .]
3. Investment earnings on fund deposited in the Tax Adjustment Reserve Fund. Funds transferred to the Tax Adjustment Reserve Fund shall be invested by the Treasurer of State in accordance with applicable provisions of law and all earnings on these funds shall be credited to the fund.
[ 1987, c. 4, §1 (NEW) .]
4. Fund adjustments. Adjustments to the fund shall be as follows.
A. A transfer from this fund to the General Fund to offset the loss of revenue attributable to income tax reductions to avoid a windfall for the tax year 1987 is required prior to June 30, 1988, in the amount of $16,500,000. [1987, c. 892, §1 (RPR).]
B. A transfer from this fund to the General Fund is required to offset the loss of revenue resulting from individual income tax reform for the 1988 tax year. The amount of this transfer will be equal to the amount certified to the fund because of increased individual income tax collections through the period ending June 30, 1988, plus accrued interest, less the amount transferred in paragraph A to offset individual income tax reductions and less the amount expended to offset 1987 tax year rebates and their administrative costs. This transfer shall be made no later than October 1, 1988. [1989, c. 502, Pt. A, §13 (RPR); 1989, c. 878, Pt. A, §12 (RPR).]
C. The State Controller shall transfer to the General Fund any balance in this fund on June 30, 1988, which was certified to it in accordance with subsection 2 as revenue directly attributable to corporate income tax. This transfer will provide additional resources for property tax relief through an appropriation to the General Purpose Aid to Local Schools Account. [1989, c. 502, Pt. A, §14 (NEW); 1989, c. 878, Pt. A, §13 (RPR).]
D. It is intended that the State Controller transfer the amounts defined in paragraph C from the General Fund balance to undedicated revenue. These transfers shall be made on a monthly basis during the period of January 1989, to June 1989, in amounts directly proportional to total individual income tax revenue estimates for those months. [1987, c. 892, §1 (NEW).]
[ 1989, c. 502, §§13 and 14 (AMD); 1989, c. 878, Pt. A, §§12, 13 (AMD) .]
SECTION HISTORY
1987, c. 4, §1 (NEW). 1987, c. 504, §1 (AMD). 1987, c. 816, §S (AMD). 1987, c. 819, §1 (AMD). 1987, c. 832, §1 (AMD). 1987, c. 892, §1 (AMD). 1989, c. 502, §§A13,A14 (AMD). 1989, c. 878, §§A12,13 (AMD).