Agreement For Local Government To Repay Sales Tax To State

If for any reason a local taxing jurisdiction is required to repay the state for a prior distribution of sales and use tax collections, the bill permits the executive director of the department of revenue to deduct the amount owed from future distributions of the tax collections. The executive director and the local taxing jurisdiction may enter into an intergovernmental agreement, which shall not exceed 3 years, to establish the terms of the repayment. The executive director is required to notify the state controller of the agreement.

The bill also specifies that a local taxing jurisdiction's repayment for a prior distribution of sales and use tax collection is exempted from the state controller's usual debt collection procedures.

(Note: This summary applies to this bill as introduced.)