04-09-1975 Council Agenda - Laserfiche WebLink

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Estimates of Distribution of Gross Earle Taxes to Local Governments Attached are estimates of the amount of gross earnings taxes to be distributed to local governments in 1976 Gov- ernor Anderson's proposed budget. The proposal includes a __- turn of 100% of all telephone, railroad, telegraph and freight line gross earnings taxes and the remaining state share of taconite railroad gross earnings taxes to local governments. The estimate is based on data supplie by th telephone companies on the geographic origin of telephone gross earnings ' taxes. Most railroads have failed to provide the requested data which is necessary to mane an estimate based on the disLribu'io-: system used in the proposal. Therefore, the distribution a r'. in the Knutson Report has been used as the only available cuide to a distribution of railroad gross earnings taxes. The Knutson <e- port was given by the railroad industry to the 1974 Legislature in support of the railroad industry's own bill. The figures shown are totals of the proposed discrb tion of telephone, railroad, and the remaining state share of taconite railroad gross earnings taxes. Telegraph and freight line gross earnings distributions are not included. This distribution is separate from and in addit to the existing Local Government Aid law. Communities which received gross earnings aids under laws abolished in 1973 will get this new aid as an addition to the existing Local Goocrnment aid. Local Government Aid would continue to include a ncrandfathern of the old gross earnings distributions. School districts rt:c-'.°:inc gross earnings distribution under existing law coati - to receive the aid. The funds for the school district __ _._. will come "off the top" of the entire gross earn :inc.s tion rather than as a separate appropriation.