SB 177

Present law requires th e commissioner of revenue to deposit promptly in state depositories all moneys received by the commissioner, and all such moneys must be earmarked and allocated according to law. Present law provides s everal special allocations of moneys so collected. One such special allocation requires the commissioner to pa y into the state general fund and allocat e exclusively for general state purposes all revenue generated from the sales and use tax rate increasin g from 6 to 7% , and from the tax levied at the rate of 2.75% on any single article of personal property between $ 1,600 and $3,200. This bill removes from these provisions the requirement for the commissioner to deposit the revenue generated from the sales and use tax rate increase from 6 to 7% into the general fund for general purposes. This bill creates a special allocation that requires, of the revenue generated from the sales and use tax rate increase from 6 to 7% , 4.6030% to be apportioned to several incorporated municipalities within this state to be allocated and distributed to them as presently required by the commissioner . The rest of the revenue, 95.3970% , must be paid into the state general fund and allocated exclusively for general state purpo ses.