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4 <br /> Fund to help offset the unanticipated revenue shortfalls . The Board <br /> adopted this approach last year to strengthen the fund balance picture <br /> for the 1992-93 budget . <br /> Intangibles Tax <br /> For the past two years, the total amount of intangibles tax proceeds <br /> distributed to all local governments has been frozen, with the State <br /> keeping growth in this revenue source . Orange County accrues the <br /> intangible tax proceeds received in August, to the prior year. For <br /> example, intangible receipts received in August 1992 were budgeted and <br /> received as revenue for the 1991-92 fiscal year. Intangibles receipts <br /> for the current fiscal year are those receipts we would receive in <br /> August 1993 . We are one of a handful of counties which actually accrue <br /> intangibles . <br /> There are two components of the intangibles receipts distributed to <br /> local governmental units . The primary component is actual tax revenue <br /> generated on a tax rate of 25 cents per $100 of value on primarily <br /> stocks and bonds held as of December 31 and payable by the following <br /> April 15 . For Orange County, this is approximately $1 . 8 million. The <br /> second component of the intangibles tax distribution is a reimbursement <br /> to local governments because of changes made by the State to the <br /> intangibles tax base . Prior to 1986, the State also levied the <br /> intangibles tax on money on deposit, money on deposit with insurance <br /> companies and money on hand. The State compensates counties and <br /> cities for this lost intangibles tax revenue . For Orange County this <br /> reimbursement is equal to approximately $250 , 000 . <br /> Pending before the General Assembly (SB 28 or HB 134) is legislation to <br /> change the timing of the State' s distribution of the intangibles tax to <br /> local governments . Under these proposed bills, the reimbursements <br /> portion of the intangibles distribution (the smaller portion) would <br /> continue to be distributed in August . The larger portion of the <br /> distribution, the actual tax receipts (an estimated $1 . 8 million, plus <br /> any growth) , would be distributed to local governments the following <br /> June . <br /> This legislation, strongly supported by the Association of County <br /> Commissioners, would have a very positive long-term effect on local <br /> governments because it would enable local governments to automatically <br /> receive the annual growth on these revenue streams . <br /> For local governmental units which do not accrue intangible taxes, this <br /> legislation has no fiscal impact, other than potential cash flow impact <br /> since these funds would be received in the same fiscal year as <br /> budgeted. For local governmental units which accrue these funds, the <br /> net impact on total fund balance is one year' s loss of the intangibles <br /> tax receipts since revenue received in June 1994 obviously cannot be <br /> accrued back to the 1992-93 fiscal year. <br /> Sensitive to the cash flow issue for local governments, the General <br /> Assembly also is considering changing the distribution of another <br />