Local government revenue from oil and gas production

Oil and gas production generates substantial revenue for state and local governments. This report examines revenue from oil and gas production flowing to local governments through four mechanisms: (i) state taxes or fees on oil and gas production; (ii) local property taxes on oil and gas property; (iii) leasing of state-owned land; and (iv) leasing of federally owned land. We examine every major oil- and gas-producing state and find that the share of oil and gas production value allocated to and collected by local governments ranges widely, from 0.5 percent to more than 9 percent due to numerous policy differences among states. School districts and trust funds endowing future school operations tend to see the highest share of revenue, followed by counties. Municipalities and other local governments with more limited geographic boundaries tend to receive smaller shares of oil and gas driven revenue. Some states utilize grant programs to allocate revenue to where impacts from the industry are greatest. Others send most revenue to state operating or trust funds, with little revenue earmarked specifically for local governments.

SC revenue ruling #16-2

The purpose of this advisory opinion is to update SC Revenue Ruling #91-15 concerning interest exempt from South Carolina income taxes. This advisory opinion provides a discussion of the types of interest exempt from South Carolina income taxes,1 the taxability of exempt interest when distributed as a dividend from a mutual fund, and Section 265 of the Internal Revenue Code which disallows a deduction for expenses allocable to tax-exempt income. This document also provides examples of tax-exempt obligations and obligations which are not tax-exempt for South Carolina income tax purposes.

SC REVENUE RULING #16-5

This ruling proclaims that charges paid by a customer for streaming television programs, movies, music, and other similar content are charges for communication services and are therefore subject to South Carolina sales and use tax whether paid for as part of a subscription service, per item, or per event.

SC revenue ruling #16-6

The following guidance is part of the Department’s continuing effort to provide the public updated use tax information, including reporting and filing methods. The questions and answers are written in general terms to explain the application of the use tax.

The introduction of a financial transaction tax in Italy

Mestrado em Finanças

Understanding the Impact of the Property Tax Appeal Process on Assessment Uniformity: Procedures, Structures, and Outcomes

Property taxes serve as a vital revenue source for local governments. The revenues derived from the property tax function as the primary funding source for a variety of critical local public service systems. Property tax appeal systems serve as quasi-administrative-judicial mechanisms intended to assure the public that property tax assessments are correct, fair, and equitable. Despite these important functions, there is a paucity of empirical research related to property tax appeal systems. This study contributes to property tax literature by identifying who participates in the property tax appeal process and examining their motivations for participation. In addition, the study sought to determine whether patterns of use and success in appeal systems affected the distribution of the tax burden. Data were collected by means of a survey distributed to single-family property owners from two Florida counties. In addition, state and county documents were analyzed to determine appeal patterns and examine the impact on assessment uniformity, over a three-year period. The survey data provided contextual evidence that single-family property owners are not as troubled by property taxes as they are by the conduct of local government officials. The analyses of the decision to appeal indicated that more expensive properties and properties excluded from initial uniformity analyses were more likely to be appealed, while properties with homestead exemptions were less likely to be appealed. The value change analyses indicated that appeals are clustered in certain geographical areas; however, these areas do not always experience a greater percentage of the value changes. Interestingly, professional representation did not increase the probability of obtaining a reduction in value. Other relationships between the variables were discovered, but often with weak predictive ability. Findings from the assessment uniformity analyses were also interesting. The results indicated that the appeals mechanisms in both counties improved assessment uniformity. On average, appealed properties exhibited greater horizontal and vertical inequities, as compared to non-appealed properties, prior to the appeals process. After, the appeal process was completed; the indicators of horizontal and vertical equity were largely improved. However, there were some indications of regressivity in the final year of the study.

2016 Road Use Tax Fund (RUTF) Study

A key component of Iowa’s transportation system is the public roadway system owned and maintained by the state, cities and counties. In order to regularly evaluate the conditions of Iowa’s public roadway infrastructure and assess the ability of existing revenues to meet the needs of the system, the Iowa Department of Transportation’s 2006 Road Use Tax Fund (RUTF) report to the legislature included a recommendation that a study be conducted every five years. That recommendation was included in legislation adopted in 2007 and signed into law. The law specifically requires the following (2016 Iowa Code Section 307.31):  “The department shall periodically review the current revenue levels of the road use tax fund and the sufficiency of those revenues for the projected construction and maintenance needs of city, county, and state governments in the future. The department shall submit a written report to the general assembly regarding its findings by December 31 every five years, beginning in 2011. The report may include recommendations concerning funding levels needed to support the future mobility and accessibility for users of Iowa's public road system.”  “The department shall evaluate alternative funding sources for road maintenance and construction and report to the general assembly at least every five years on the advantages and disadvantages and the viability of alternative funding mechanisms.” To comply with this requirement, the Iowa Department of Transportation (DOT) prepared a 2011 RUTF Study (www.iowadot.gov/pdf_files/RUTFStudy2011.pdf). This study relied heavily on the work of the Governor’s Transportation 2020 Citizen Advisory Commission (CAC), established by Governor Terry E. Branstad to assist the Iowa DOT as it assessed the condition of Iowa’s roadway system and evaluated current and future funding available to best address system needs. The 2011 RUTF Study ultimately led to the passage of Senate File 257 in the 2015 legislative session that was signed into law on February 25, 2015. The major component of this bill was the increase of the state fuel tax rate on March 1, 2015, in order to meet the critical need funding shortfall identified in the study. With the recent increase in the state fuel tax rate, jurisdictions across Iowa are now putting those additional funds into road and bridge construction projects. With one full construction season complete following the increase in funding, it is difficult to accurately assess the long-term impact on construction needs. Therefore, this 2016 RUTF Study focuses on the actions taken since the 2011 RUTF Study and on alternative funding mechanisms.

TAX YEAR 2013 ESTIMATED AVERAGE TOTAL MILLAGE RATE BY COUNTY

This is a 2013 estimate of average total millage rate broken down by county, millage, percent relative to statewide average and relative to the statewide average.

Property tax review & analysis requested by House Tax Policy Review Committee

This Powerpoint presentation gives statistics on property taxes throughout the state.

PROPERTY TAX BRIEFING PRESENTED TO SOUTH CAROLINA SENATE FINANCE COMMITTEE

This Powerpoint presentation gives statistics on property taxes in South Carolina.

Trust Fund for Property Tax Relief

This graph shows the trust fund for property tax relief from FY 2005 to FY 2016.