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9 <br />2) Article_=10 Local Option Sales Tas Earmarking <br />In 1983, the General Assembly authorized counties to levy and additional '/~% local option sales <br />tax. The legislation required that a portion of the counties' revenues from this new tax be used for <br />public school capital outlay needs. The specific earmarking provision required that: <br />• for the first ~-year period, 40% of the counties' tax proceeds be used for school capital outlay <br />and, <br />• for the second ~-year period, 30% of the proceeds be so designated. <br />In 1983, the General Assembly extended the 30% earmarking for another ~ years. For the vast <br />majority of the counties, this means that the earmarking requirement sunsets at the end of this <br />fiscal year (June 30, 1998). <br />Recommendation <br />The Taxation and Finance Steering Committee recommends that the Association- oppose <br />legislation to extend the earmarking requirement on the 1983 sales tax. <br />ACTION REQUESTED: <br />The Board of Directors is asked to consider the above recommendations and to take appropriate <br />action. <br />Ushared/boardlT& F21998mtg <br />