Page:United States Statutes at Large Volume 96 Part 1.djvu/1058

 96 STAT. 1016

Regulations.

PUBLIC LAW 97-258—SEPT. 13, 1982

(3) withhold the amount of the reduction from payments to the State government under this chapter, (f) On the day a reduction under this section in an amount allocated to a State government is final, the Secretary shall transfer an amount equal to the reduction from the State and Local Government Fiscal Assistance Trust Fund to the general fund of the Treasury. (g) The Secretary shall prescribe regulations to carry out this section. § 6707. State allocations for units of general local government (a) For each entitlement period, the Secretary of the Treasury shall allocate to each State out of the amount authorized for the period under section 6703(b)(2) of this title an amount bearing the same ratio to the amount authorized as the amount allocated to the State under this section bears to the total amount allocated to all States under this section. The Secretary shall— (1) determine the amount allocated to the State under subsection (b) or (c) of this section and allocate the larger amount to the State; and (2) allocate the amount allocated to the State to units of general local government in the State under sections 6708-6710 of this title. (b)(1) The amount allocated to a State under this subsection for an entitlement period is the amount bearing the same ratio to $5,300,000,000 as— (A) the population of the State, multiplied by the general tax effort factor of the State (determined under paragraph (2) of this subsection), multiplied by the relative income factor of the State (determined under paragraph (3) of this subsection); bears to (B) the sum of the products determined under subclause (A) of this paragraph for all States. (2) The general tax effort factor of a State for an entitlement period is— (A) the net amount of State and local taxes of the State collected during the years used by the Secretary of Commerce in the most recent Bureau of the Census general determination of State and local taxes made before the beginning of the entitlement period; divided by (B) the total income of individuals, as determined by the Secretary of Commerce for national income accounts purposes, attributed to the State for the same years. (3) The relative income factor of a State is a fraction in which— (A) the numerator is the per capita income of the United States; and (B) the denominator is the per capita income of the State, (c) The amount allocated to a State under this subsection for an entitlement period is the amount the State would receive if— (1) $1,166,666,667 were allocated among the States on the basis of population by allocating to each State an amount bearing the same ratio to the total amount to be allocated as the population of the State bears to the population of all States; (2) $1,166,666,667 were allocated among the States on the basis of population inversely weighted for per capita income, by allocating to each State an amount bearing the same ratio to the total amount to be allocated as—

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