Page:United States Statutes at Large Volume 86.djvu/972

 DSO

PUBLIC LAW 9 2 - 5 1 2 - O C T. 20, 1972

[86 STAT.

justed taxes of each other unit of local government within that county area, divided by (2) the aggregate income (as defined in paragraph (3) of subsection (a)) attributed to that county area. (e)

GENERAL TAX EFFORT FACTOR OF U N I T OF IJDCAL GOVERN-

MENT.—For purposes of this subtitle— (1) IN GENERAL.—The general tax effort factor of any unit of local government for any entitlement period is— (A) the adjusted taxes of that unit of local government, divided by (B) the aggregate income (as defined in paragraph (3) of - yi subsection (a)) attributed to that unit of local government. (2) ADJUSTED TAXES.—



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(A) IN GENERAL.—The adjusted taxes of any unit of local government are— (i) the compulsory contributions exacted by such government for public purposes (other than employee and employer assessments and contributions to finance retirement and social insurance systems, and other than special assessments for capital outlay), as such contrite,.,;,,_, butions are determined by the Bureau of the Census for general statistical purposes, (ii) adjusted (under regulations prescribed by the Secretary) by excluding an amount equal to that portion of such compulsory contributions which is properly allocable to expenses for education. (B) CERTAIN SALES TAXES COLLECTED BY COUNTIES.—In any
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case where— (i) a county government exacts sales taxes within the geographic area of a unit of local government and transfers part or all of such taxes to svich unit without specifying the purposes for which such unit may spend the revenues, and , (ii) the Governor of the State notifies the Secretary that the requirements of this subparagraph have been met with respect to such taxes, then the taxes so transferred shall be treated as the taxes of the unit of local government (and not the taxes of the county government). (f) RELATIVE INCOME FACTOR.—For purposes of this subtitle, the relative income factor is a fraction— (1) in the case of a State, the numerator of which is the per capita income of the United States and the denominator of which is the per capita income of that State; (2) in the case of a county area, the numerator of which is the . J, per capita income of the State in which it is located and the denominator of which is the per capita income of that county area; and (3) in the case of a unit of local government, the numerator of which is the per capita income of the county area in which it is located and the denominator of which is the per capita income of the geographic area of that unit of local government. For purposes of this subsection, per capita income shall be determined on the basis of income as defined in paragraph (3) of subsection (a). (g) ALLOCATION RULES FOR F IV E FACTOR FORMULA.—For purposes

of section 106(b)(3)— (1) ALLOCATION ON BASIS or POPULATION.—Any allocation among the States on the basis of population shall be made by

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