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EXPLANATION OF BILL (HB 1542) <br /> Authorizes any county that levies both the 1% and 1/2% local-option sales <br /> taxes to levy an additional 1/2% tax. The tax would be collected by the state <br /> and distributed to cities and counties. <br /> The bill restricts the use of the proceeds by each local government unit as <br /> follows: <br /> Counties <br /> (1) For the first 11 years that the tax is in effect (first year is counted <br /> as full year regardless of when the tax levied during year) , counties <br /> are required to spend a fixed portion of new tax revenue for public <br /> school capital outlay (including retirement of public school debt <br /> issued within the five years prior to the date the new tax took <br /> effect) , according to the following schedule: <br /> Years 1-2 60% <br /> Years 3-4 50 <br /> . Years 5--8 40 <br /> Year 9-10 30 . <br /> Year 11 . 20 - . . <br /> (2) As in the 1983 local sales tax authorization, a county may petition the <br /> Local Government Commission of the Department of State Treasurer for a <br /> variance from the earmarking requirement. A variance may be granted if . <br /> the county can demonstrate that it can meet its public school capital <br /> (` needs without restricting the new revenue. <br /> (3) Authorization is also provided for local boards of education to <br /> petition the Local Government Commission to make a finding that the . <br /> county has not complied with the requirements of the article in <br /> providing funds for school capital outlay purposes. <br /> (4) The bill requires the Local Government Commission to provide to the - <br /> General Assembly by February'15 of each year a report on the level of <br /> each county's appropriation to public school capital (including <br /> retirement of school debt and funds placed in a reserve for retirement <br /> of debt) . The report shall contain the following information for each <br /> county: <br /> (a) public school capital outlay for a minimum of at least the most <br /> recent five year period; <br /> (b) estimates of public school facility needs; <br /> (c) the proportion of the 1983 authorized 1/2% sales tax used for <br /> . public school outlay (including retirement of public school debt) ; <br /> (d) the proportion of revenue from this bill that is used for public <br /> school capital outlay (including retirement of public school <br /> debt); and <br /> (e) any other factors that would enable the Commission to determine <br /> whether a county has complied with legislative intent. <br /> 3 <br />