As part of its recommendations to the Department of Natural Resources Capital Budget and the Budget Reconciliation and Financing Act of 2013, the Department of Legislative Services has recommended modifications to the transfer tax program and the repeal of a $90 million repayment to Program Open Space, which would result in local governments losing at least $20 million under the POS formula.

Transfer Tax Modification

Provision in BRFA as Introduced: Authorizes the transfer of $89,198,555 in transfer tax revenues to the general fund in fiscal 2014, $75,062,000 in fiscal 2015, $77,654,000 in fiscal 2016, $82,771,000 in fiscal 2017, and $86,028,000 in fiscal 2018. The transfers may not be taken into account for purposes of determining any allocation or appropriation required under the statutory provisions relating to the repayment of the transfers in subsequent years.

Provision as Recommended by DLS: Modify the transfer tax formula to redirect permanently$25,000,000 in special funds to the Natural Resources Police and to redirect for five years$25,000,000 in special funds annually to the State general fund.

Repeal Program Open Space $90 million Repayment

Provision in BRFA as Introduced: Defer repayment for a $90 million distribution of transfer tax revenues to the general fund made in fiscal 2006 until fiscal 2016.

Provision as Recommended by DLS: Repeal repayment requirement in its entirety.