Agenda Package 3-15-13 Budget Kickoff Work Session

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r , 3 n U 6 LEE COUNTY Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT ITEM NO. II. XX Information Meeting Date: March 15, 2013 _ Action Item _ Consent Agenda SUBJECT Sales Tax Distribution Method DEPARTMENT Finance CONTACT PERSON Lisa G. Minter, Assistant County Manager /Finance Director REQUEST: N/A — Information Only SUMMARY Attached you will find the schedule reflecting the potential impact of a change in the sales tax distribution method in Lee County. As you are aware, sales taxes are distributed within the County on a per capita basis currently. The County can select between the ad valorem method and the per capita method of distribution each year by adopting a resolution in April and filing it with the Department of Revenue within 15 days of adoption. The attached schedules are based on the levy figures that would apply to distributions in the current year. Those levy figures have been applied to the FY 11 -12 collections so the actual numbers if the change is made will vary from these schedules. Switching to the ad valorem distribution method, makes the distributions subject to changes in the tax rates, so I have also prepared a schedule showing the impact of a change in the County rate and fire district rates with no change in the City or Town rate. There is also a schedule attached showing the impact of a 6 -cents increase in the City's rate and a 12 -cents increase in the Town's rate. BUDGET IMPACT N/A ATTACHMENT(S) Ad valorem sales tax distribution analysis Ad valorem sales tax distribution analysis with lower County & Fire District rates Ad valorem sales tax distribution analysis with lower County & Fire District rates and higher City and Town rates PUBLIC HEARING No PRIOR BOARD ACTION N/A RECOMMENDATION N/A — Information Only