Council Action Requested:
Adoption of the annual Resolution setting the Local Option Sales Tax (LOST) credit Factor number.
Points to Consider:
The voters of Lancaster County approved a 1% local option sales and use tax which is authorized under Code Section 4-10-10. Thirty-one of the state's 46 counties have enacted the sales tax.
This tax is a general sales and use tax on all sales at retail (with a few exceptions) taxable under the state sales and use tax.
This tax is imposed to reduce the property tax burden on persons in the counties where this tax is imposed.
For those jurisdictions with a Local Option Sales Tax, they must establish a credit factor or percentage by which property taxes will be reduced due to the imposition of the local sales tax.
The revenue from the local option sales tax is distributed by the State Treasurer on the basis of 71% to the property tax credit fund and 29% to the county revenue fund.
The formula is driven by state law and is not subject to amendment by Council.
The Resolution spells out the underlying data and how Council has historically utilized the proceeds, pursuant to state law.
Funding and Liability Factors:
The LOST Credit Factor for the coming year is .000866, as determined by the Lancaster County Auditor.
Recommendation:
Adopt the Resolution.